Today 11/13/08 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 6.14% (6.10% in the southeast), down from 6.20% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.81%, down from 5.88% last week. A year ago the 30 year rate was 6.24%.
The weakening economy here in the United States forced interest rates a bit lower this week. This is the 2nd week in a row (big whoopee) that interest rates have gone lower. The Federal Reserves recent moves to drop their rates may have filtered down to the consumer market. But to me it does not look like such a big change. I had hoped for a bigger drop.
New mortgage applications fell during the last week in October and the National Association of REALTORs (NAR) said that pending sales of existing homes fell 4.6% in September, below predictions.
On the news tonight it appeared that a lot of the money that the federal government was pumping into the banking system was being hoarded rather than being pushed out as consumer loans. One bank said they had set aside $6 billion for bonuses!!! Can you believe it. They said none of these bonus funds were from the government money, but if they have that much money set aside for bonuses when so many of us are suffering, why don't they use it to improve the country's overall financial situation rather than giving "extras" to the same executive idiots that got us into this situation???? This does not make any sense to me. It is like me crying to my parents that I need money to make my mortgage payment, but that I have plenty in my savings account for a trip to Europe. My parents would say, forget the trip, use your money to pay the mortgage. Funny how common sense rules we all know about do not apply to the government that is supposed to work for YOU AND ME.
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