Today 2/21/08, Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans moved upward again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.04% (5.97% in the southeast), up from 5.72% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.64%, up from 5.25% last week. These jumps were larger than those of the recent past. Those that did not consider locking in rates while they were in the lower range or that did not think of refinancing, may be kicking themselves now. Remember, I told you that at some point either the interest rates or the prices would rise. And the interest rates are the more likely to go higher.
Interest rates are now back to nearly where they were at the start of 2008. Though the rates on adjustable rate mortgages were a little below what they were at the start of the year. But keep in mind, unless you can predict the future, if rates go way up, an adjustable could turn out to be a bad idea. But without doubt, some buyers will not learn from the past and will only look at the short-term rates. A mistake in my opinion.
The Federal Reserve reduced its forecast of economic growth for this year. Single-family construction in January fell to the lowest level since 1991. Starts were especially low in the west which experienced the slowest construction pace since 1959!!
Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.
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.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida