Today, 6/7/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.67%, down from 3.75% last week. The average interest rate for 15 year fixed-rate mortgages was 2.94%, down from 2.97% last week. A year ago the 30 year rate was 4.49%. Each week I tell myself that the rates cannot go any lower. Then within 7 days, I have to eat my words again. I guarantee you that there is a bottom to which they cannot go lower, but I have given up trying to guess where that level could be. But without a doubt there are some very attractive financing deals out there for those who qualify. Hope you are one of those lucky buyers!
This is the 6th week in a row that rates have dropped. Treasury bonds yields dropped due to poor economic and employment news and mortgage rates followed them lower. Most of us heard that May's employment figures were less than glowing. Of course, no recovery is a perfect road and bumps are to be expected. Gross Domestic Product rose 1.9% in the first quarter of 2012, after it had been reported that the rise was 2.2 The markets did not like that surprise revision. Also, in May, only 69,000 jobs were added to our workforce. Not nearly what had been hoped for. Then to sprinkle salt into the wound, the jobs numbers for March and April were also revised downward. Ouch!
As you have probably noticed frequently in past posts, the economic market does not like bad news. And bad news tends to push down the yields of bonds and also the interest rates on mortgages. The latter being the "silver lining" in the otherwise gloomy cloud.
Let's hope that the news will be a bit brighter in weeks to come. Of course, without causing interest rates to rise too much. That would be a nice combination!
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