Today 8/28/08 Freddie Mac reported that average mortgage interest rates have gone down a bit further. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.40% (6.36% in the southeast), down from 6.47% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.93%, down from 6.00% last week. A year ago the 30 year rate was 6.67%.
News of continued economic weakness in the United States caused interest rates to inch downward for a second week. July's economic indicators went down, not up. Is that a surprise when gas is still hovering very close to the $4.00 mark in much of the country? Also, and this is just my own personal opinion, I think that the uncertainty leading up to the presidential election in November also leads to some of the vagueness of the data. Consumers could be taking a wait-and-see stance until they see who our leader will be. Even if it is not their favorite, at least the ambiguity will be gone and perhaps buyers and sellers will make some moves. Just my very humble opinion.
Now for some positive news. Both the National Association of REALTORS (NAR) and the Florida Association of REALTORS (FAR) are reporting that sales of existing homes went up recently. The speed at which home prices were decreasing has slowed for the 4th straight month. The number of metro areas where prices actually went up also increased. Home inventories are decreasing, while families saying they are planning on buying a home within the next 6 months went up. Too soon to say we are coming out of the tunnel, but perhaps that is a flicker of daylight we are seeing way up ahead. Stay tuned!
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