Today 9/20/07, Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans went up very slightly, despite a cut in the Federal Reserve's key interest rate 2 days ago. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.34% (6.27% in the southeast), up a bit from 6.31% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.98%, up a tad from 5.97% last week.
It could very well be that the Federal Reserve's cut came too late in the week to have much effect on this week's report. It will be interesting to see what the rates are next week when Freddie Mac reports again. Freddie Mac, at this point, says that the cut by the Fed could lessen some of the "volatility" in the short-term interest rates that we have seen recently. It remains to be seen what effect the cut will have on the long-term interest rates. However, it may benefit those homeowners with adjustable rate mortgages that are about to have their rates reset.
Freddie Mac spokespersons said that the mortgage rates have been lingering a lower levels since May 2007. The recent drop in rates has spurred more people to apply for mortgages and applications for refinancing are the highest they have been since April 2007.
Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.
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