Are you old enough to have seen "I Love Lucy", "The Real McCoys" and "Leave it to Beaver" when they first were shown on television? Not talking about syndication here. Well, if you can, here is another blast from the past. Average mortgage interest rates that we have not seen for over 50 years!
Today, 8/18/2011, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.15%, down from 4.32% last week. The average interest rate for 15 year fixed-rate mortgages was 3.36%, down from 3.50% last week. A year ago the 30 year rate was 4.42%.
The Federal Reserve's promise to keep interest rates low, at least until 2013, coupled with concerns about economic situations in the European Union and other areas around the world, helped to bring our interest rates to bargain basement levels. Let's face it, things are tough for many people. However, many people DO have the credit and resources to pick up some "Labor Day Sale" priced properties and lock in these low, LOW interest rates on long-term loans. Hope some of you are in that lucky group.
One thing these low rates have done is to encourage many homeowners to refinance their homes and lower their payments due to better interest rates. Freddie Mac calculates that about 70% of the mortgage activity in the first half of 2011 was due to people refinancing their loans. Nice opportunity if you are in a position to do it. Imagine the difference between a 6% loan and a 4.15% loan over 30 years. Even the monthly payments will see dramatic drops when the interest rate changes that much. No wonder so many people are trying to refinance.
It will be interesting to see what rates do next week. With economies, stock markets, governments, etc all in flux, it must be hard for the experts to make any forecasts that they are comfortable with. We are living through some very uncertain times. That is for sure.
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.
I would also be happy to assist you in any way that I can. Just call JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. : 813-783-4444 or e-mail me at: firstname.lastname@example.org You are also welcome at my webpage: www.jelwell.century21bnr.com
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida