Today 8/21/08 Freddie Mac , after three weeks when the 30 year fixed-rate on mortgages had not changed, finally a small drop. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.47% (6.45% in the southeast), down from 6.52% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.00%, down from 6.07% last week. A year ago the 30 year rate was 6.52%.
As I have reported in previous posts, interest rates are still at historically low levels. Home prices too are setting in very affordable ranges. However, these two factors have failed to stimulate significant home buying in the nation. Do not ask me why. But I suspect that a lot of the "doom and gloom" that the public gets hit with in the news every day is making their perceptions of our current situation worse than it is. Perception has become reality and homebuyers have become frozen with fear and worry. Even though some of the best deals in decades are out there for the picking.
Next week reports from Freddie Mac, S&P/Case-Shiller, and Office of Federal Housing Enterprise Oversight (OFHEO) will perhaps give us a better idea of whether the apparent recent slowing of the decline of home prices is going to continue, or is just a temporary pause before further drops take place. Many of my colleagues here in the west central section of Florida think we are about as low as we can go. We cannot see how prices can go much lower here. But we are just one part of a large state and an even larger country. Next week's information should be helpful.
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