Yesterday, 5/3/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.84%, down from 3.88% last week. The average interest rate for 15 year fixed-rate mortgages was 3.07%, down from 3.12% from last week. A year ago the 30 year rate was 4.71%. Not since 1951 have rates been this low! That was before I was born! Wow!
Rates on bonds and on mortgages remained low due to indications that economic growth had slowed a bit and inflation was nearly non-existent in most sectors. In the case of mortgage interest, record low levels were achieved. Can you imagine having a mortgage with a 3.84% interest rate for the next 30 years! Incredible. No wonder home affordability has never been better.
Here in Zephyrhills prices seem to have leveled off. Though some buyers still think they can offer 50% less than the asking price and get away with it. That never works and usually has very negative effects.
About the only area where prices are still really low is in the condos. In most other areas, the prices leveled out here a few months ago, and now we see people getting higher prices than they did previously. Even a few bidding wars here and there. Obviously, they are not going to rocket skyward like they did 7 years ago, but they are heading higher little-by-little. Now may be the time to get "off that fence". The time for waiting for prices to get even lower could be over for most buyers. And it is highly unlikely that interest rates will go much lower. After all, there are points beyond which they cannot drop.
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 Licensed in Florida.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida