Today, 5/20/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.84% (4.83% in the southeast), down from 4.93% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.24%, down from 4.30% last week. A year ago the 30 year rate was 4.82%. Wow, rates are nearly what they were way back last year! Not a bad thing for home buyers or for sellers. Lower interest rates help improve home affordability, along with reasonable home prices in may parts of the country.
According to a Freddie Mac spokesperson: "Low mortgage rates, coupled with the homebuyer tax credit, helped strengthen the housing market in the first four months of the year. New construction on one-family homes rose for the fourth consecutive month in April to an annualized rate of nearly 0.6 million units and represented the strongest pace since August 2008. Three of the four Census regions showed increases, led by a 14.8 percent jump in the South."
As I reported a bit earlier, the National Association of Home Builders (NAHB) also reported that builder confidence was higher in May 2010. Now at its highest level since August 2007.
So again, more positive sides to go with the ones that we are seeing here on the ground. April 2010 was my best month in 4 years and I am not in the top group of CENTURY 21 agents in North and Central Florida, in terms of number of sale sides. Used to be we all were taking 1 step forward and then 3 steps back. But now it looks more like 4 steps forward and 1 step back. Therefore, more forward movement. A very, very good thing!.
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