Today, 12/9/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.61% (4.58% in the southeast), up from 4.46% a week ago. The average interest rate for 15 year fixed-rate mortgages was 3.96%, up from 3.81% last week. A year ago the 30 year rate was 4.81%.
Bond yields went up as a result of more positive news about the economic situation in Europe. And mortgage interest rates played "follow the leader". Our current average interest rate is nearly 1/2 a point higher than the low we hit in October of this year. On a typical loan of $200,000, that means paying $50 more each month on to your mortgage lender.
As you read here earlier, the National Association of REALTORS reported that the sales of existing homes rose 10.4% in October, the largest surge since last April. So housing demand could be on the increase.
Freddie Mac also said that mortgage applications for home purchases, not refinancing, rose for 3 weeks in a row for the period ending on December 3rd. A total of 17.7%. That was the strongest surge since last May.
Here in Zephyrhills, our winter visitors are returning, and that means more sales in the area. We are seeing more floor traffic in our offices, more visitors to my websites, and an increase in the volume of phone calls/e-mails. Though it is winter here, things are heating up!
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