Today, 8/9/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.59%, up from last week when it was 3.55%. The average interest rate for 15 year fixed-rate mortgages was 2.84%, up from 2.83% last week. A year ago the 30 year rate was 4.32%. Two weeks ago I asked if we had finally reached a "bottom". Now we have had two weeks in a row of increases! The rates could not keep going down forever and perhaps we have found the low point finally. However, these are still ridiculously low rates that will save home buyers tens of thousands dollars over the life of the loan!
Freddie Mac's spokesperson offered the following explanations for the rise in rates:
- Higher than expected employment figures came in with 163,000 new jobs added in July 2012.
- That was the biggest increase since last February.
- Announced corporate lay-offs fell by 43% last month compared to July 2011.
- Many experts believe that the above information is an omen of more job creation in the coming months. Let's hope so.
Based on this positive news, the interest rates on mortgage loans increased. As I said, I always amazes me that bad news makes the mortgage rates fall and good economic news makes them go up. Strange how markets work.
Now add in that multiple sources are reporting that home prices have stopped plummetting and are now rising. This could be the time to get "off the fence" and make that move. You do not want to wait too long until both home prices and interest rates reach a range that makes a home purchase impossible. You will kick yourselves if you wait too long!
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