Freddie Mac Says Average Mortgage Interest Rates Edge Upward

Today 12/20/07,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans were up just a bit. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.14% (6.12% in the southeast), up from 6.11% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.79%, up from 5.78% last week.

Apparently these small increases were caused by stronger inflation reports than had been predicted and more positive retail sales figures for November, balanced by data that suggested that the housing market would remain weakened for a few more months, thus keeping the increases to a minimum.

Higher inflation rates may still be a possibility with both the producer and consumer price indices rising last month. However, consumer spending was up and that may be a sign of increased consumer confidence in the state of the nation's economy.

Housing starts in November fell to their lowest levels since 1991 and homebuilder confidence was the lowest it has been since records were started in 1985.

All in all, it looks like a real mixed bag of news this week from Freddie Mac. No coal for Christmas, but no Mercedes in the driveway either.

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.