Today, 7/18/2013, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 4.37% down from 4.51% last week. The average interest rate for 15 year fixed-rate mortgages was 3.41%, down from 3.53% last week. A year ago the 30 year rate was 3.53%.
Even though rates are still well above the LOW levels they were just a few weeks ago, at least the rapid upward movement has abated a bit this week. Maybe this is just a "breather" or perhaps we are at a plateau where we will hover around the 4.5% level for a while. There is little doubt that the overall economic news in the coming weeks will play a part in determing which way, if any, the rates will move. I am guessing that we will not see them fall below 4% again for a while. Time will tell.
I do know that in our area, and in many parts of the country, the inventory of homes for sale is getting tighter. And that will cause an upward pressure on prices. Perhaps good news for sellers, but not so good for buyers. And ironically, sellers usually end up being buyers since as soon as they sell their homes they buy their next ones. Around and around it goes. A housing merry-go-round. Just be sure you grab "the brass ring" if you can and make a great deal on a home and a mortgage product.
Freddie Mac's Vice President said,"Fixed mortgage rates fell as Federal Reserve (Fed) Chairman Bernanke helped ease market concerns about the Fed reducing its bond purchases. During a question and answer session following a speech on July 10th, Chairman Bernanke indicated that a highly accommodative monetary policy is what's needed in the U.S. economy.
"Indications of a slowing in the economic recovery also placed downward pressure on mortgage rates. Consumer sentiment fell to a three month low in July while retail sales in June grew by only 0.4 percent, which was half of the market consensus forecast. In addition, housing starts fell in June to the slowest pace since August 2012."
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 local lender you can find several at my website: www.jelwell.century21bnr.com
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: 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