Today 7/02/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.32% (5.26% in the southeast), down from 5.42% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.77%, down from 4.87% last week. A year ago the 30 year rate was 6.35%.
The lower rates we are seeing are a big help for the housing market. That could explain why the sales of existing homes was up lately. Since rates have gone down for the past two weeks, this has helped spur people to think about refinancing their existing loans.
From many corners we are also hearing that the fall in home prices is slowing. Many think we have already bottomed-out here in Florida. It looks that way to many of us who live and work here. Of course, some are still lowering their prices, but that is largely due to the effects of starting way above what was a reasonable price at that time. Trust me, there are still sellers out there who believe that it is still 2005 and then price their homes accordingly. Shame on those agents who play along. Reality has to hit home at some point.
In my personal opinion, and I am no big New York analysist, I will not be surprised at all if we see some normalization of the Florida housing markets in the coming months. It may already have started here-and-there. 2010 may be a much better year for many of us. Let's hope so! Fingers crossed.
Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place.
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.
I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You are also welcome at my webpage: www.jelwell.century21bnr.com
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