Today 9/27/07, Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans went up around a tenth of a percent, despite a cut in the Federal Reserve's key interest rate last week. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.42% (6.37% in the southeast), up from 6.34% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.09%, up a from 5.98% last week. This was the third straight week of increases.
While many were thinking that the Fed's cuts would trickle down to the mortgage market and show up this week in lower rates, this apparently has not happened. At least not yet.
The mortgage interest rates are mirroring the direction of the 10-year Treasury securties and slid upward to almost the point they were at at the beginning of September of this year, according to a Freddie Mac spokesperson.
Although Freddie Mac is reporting that interest rates on Adjustable Rate Mortgages have declined over the past 4 weeks, demand for these types of loan products continues to diminish, and last week reached its lowest point since March of 2003!
"Existing home sales continued to decline in August to the slowest pace in 5 years to a seasonally adjusted 5.5 million units. Sales of single-family homes slowed in every census region, with the highest impact felt in the western region."
Source: Freddie Mac Press Release
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: http://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: http://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