Today, 5/13/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.93% (4.91% in the southeast), down from 5.00% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.30%, down from 4.36% last week. A year ago the 30 year rate was 4.86%.
Freddie Mac reported that this is the 5th week in a row that interest rates have dropped. They also made reference to the National Association of REALTORs report I posted a few days ago. It said that median home prices were recovering in more local areas in the first quarter of 2010. "On a year-over-year basis for the 152 areas the association reports on, 91 metropolitan areas had positive growth in the first quarter of this year. This compares to 67 areas showing positive annual growth in the 4th quarter of 2009, and only 30 cities in the 3rd quarter of last year."
Remember the advertising phrase "the gift that keeps on giving"? Well, even though the popular tax credit for buyers has ended for most people, a low interest rate like we have this week keeps on giving and giving year-after-year with lower monthly payments. Not to mention the lower total interest amount you will pay over the 30 year life of the loan. You could save tens of thousands! Nothing to sneeze at, for sure!
So don't cry too much if you missed out on the tax credit. That was just $6,500 to $8,000. The low interest rates we have now will more than make up for that tax credit in just a few years. And, then it will keep on saving you money for decades to come. Now is still a good time to buy.
Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.
If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.
If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida