Today, 5/24/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.78%, down from 3.79% last week. The average interest rate for 15 year fixed-rate mortgages was 3.04%, unchanged from last week. A year ago the 30 year rate was 4.60%. Even though the drop was not much, it still is a new record and is moving in a direction that many buyers and sellers will appreciate. Each drop, no matter how minimal, means that even more people will qualify to purchase homes. And that means that sellers will have a larger pool of potential buyers for their properties. Both sided gain!
The National Association of REALTORS (NAR) reported that we have hit the highest level on their "home affordability index" that has ever been achieved. Low prices and low interest rates worked together to reach this level. In April the number of existing-home sales reached its highest level since last January. The sales of new homes also hit a high point in April beating market forecasts. Add to that the fact that home prices have been inching upward, and going even faster in that direction in Florida, and you have signs of an improving housing market. We have not seen a 4 quarter increase since 2007.
If you remember, many experts feel that the housing slump started this last big recession. I am a believer that a housing recovery will be a good omen that points to an overall improvement in our country's financial health. Time will tell, but I am optimistic!
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