John's Florida Real Estate Blog

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For First Time Since October 2011 Average Mortgage Interest Rates Cross Above 4%!

Up Arrow - JTEToday, 3/22/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.08%, up from 3.92% last week. The average interest rate for 15 year fixed-rate mortgages was 3.30%, up from 3.16% from last week. A year ago the 30 year rate was 4.81%. Those are still low numbers to be sure, but are not nearly as nice as they were just a week ago. One has to wonder if this is just a temporary blip or if they will continue to inch upward?

Again, the yields on US Treasury Bonds went higher and the interest on mortgages followed suit. This is the first time since October of 2011 that the average rate for 30 year fixed-rate loans crossed north of 4%. Apparently, our improving economy, less worries about our commercial banks, and a likelihood that Greece will get bailed out of their economic woes helped to improve bond yields. Good news on the economic front seems to do that frequently. So, though interest rates are up, if this is due to a better economy and more good things to come, I suspect that we can deal with that! It is great to hear more good news than bad in recent months.

Freddie Mac also reported that homeowners had reduced their "financial obligations ratio" (debt payments as a share of disposable income) to the least it has been since way back in 1994! More good news. Let's hope that there is more in the weeks and months to come. We could sure use it! Now if gas prices would just return to normal levels. One can only hope!

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: jelwell1@tampabay.rr.com You are also welcome at my webpage: www.jelwell.century21bnr.com  Licensed in Florida.

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • March 22 2012 10:27AM

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