John's Florida Real Estate Blog


After Last Week's Drop, Mortgage Interest Rates Bounce Higher!

Up Arrow - JTEToday, 7/11/2013 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 4.51%  up from 4.29% last week. The average interest rate for 15 year fixed-rate mortgages was 3.53%, up from 3.39% last week. A year ago the 30 year rate was 3.56%.

So after falling back a little last week after the large jump of the previous week, not average mortgage interest rates are right back up around the 4.5% mark for 30 year fixed-rate mortgage products. Most people are now saying that the days of being able to snap up loans with rates in the mid to upper 3% range are over. Perhaps for many years to come. I know a lot of buyers who wisely saw that the "bargain" rates could not last and did not bet on them going even lower. I also know people who still have not made a move and others who said they wanted to wait for prices to go back up to sell their homes in order to buy their next ones. This last group totally missed the fact that when THEIR homes go up in value, so will the HOMES THEY WANT TO BUY! So what good did it do to wait for their homes to go up $30,000 when their next home will cost them $40,000 more? And to top it off, the mortgage they will get to buy that home will now cost them at least 1% more for the life of the loan, 30 years in many cases!! Ouch!

Oh well. I often try to explain this to people, but some are looking at the trees and missing the forest completely.

As I have said in the past, when there is good economic news, interest rates tend to go up. This time it appears that it was a very positive employment report that did the trick.

Freddie Mac's Vice President said, "June's strong employment led to more market speculation that the Federal Reserve will reduce future bond purchases causing bond yields to rise and mortgage rates followed. The economy gained 195,000 jobs in June, above the market consensus forecast, while revisions to the prior two months added 70,000 on top of that. Moreover, hourly wages rose by 2.2 percent over the last 12 months and represented the largest annual increase in nearly two years. However, the minutes of the June 18th and 19th Federal Reserve's monetary policy committee meeting, released July 10th, stated that many members indicated further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of bond purchases."

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: 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 local lender you can find several at my website:

You can also contact 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: You are also welcome at my webpage:  Licensed in Florida.

John Elwell - REALTOR


Bill Nye Realty, Inc.


Licensed in Florida


Comment balloon 0 commentsJohn Elwell • July 11 2013 03:41PM


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