After Several Weeks of Increases, Mortgage Interest Rates Drop a Bit
Today 7/3/08 Freddie Mac reported that after several weeks of increases, the average mortgage interest rates for 30 and 15 year fixed-rate loans moved a little lower. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.35% (6.31% in the southeast), down from 6.45% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.92%, down from 6.04% last week. A year ago the 30 year rate was 6.63%.
After several weeks of inflation worries and subsequent interest rate increases, the Federal Reserve is now saying that they expect inflation to moderate later this year and thus lessened the fears that the Fed would tighten the money supply by raising its own rates. This in turn caused mortgage interest rates to drop some.
Median home prices increased some in April. And though this affected the "affordability" of homes since the prices were higher, negative news for buyers. It can be seen as a positive sign that home prices are not in freefall. Sellers will like that.
If you remember, a while ago I told you that was unusual for interest rates AND home prices to be low at the same time, and that sooner or later one or the other would increase, making it more costly to buy a home. Over the past few weeks we saw interest rates go up. Now it appears the other shoe (albeit a soft shoe) has dropped with a minor increase in home prices. So buyers, take a look at your own situation and see if now may be the time to make your move. Interest rates are still historically low and so are the prices of homes. Is now the right time for you to buy? It may be worth investigating to find out!
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.
Great Blog! I've been selling real estate in Bend Oregon since 1981 and find it refreshing to find a helpful blog like yours! Keep up the good work!
Posted by: Jim Johnson, CRS | July 05, 2008 at 10:44 AM