Today, 7/30/09, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.25% (5.19% in the southeast), up from 5.20% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.69%, up from 4.68% last week. A year ago the 30 year rate was 6.52%.
The yield for bonds went up and the interest rates for mortgage rates played "Follow the Leader" it would seem. Some feel that the economy may be becoming more stable and that made the bond yields go up. The Federal Reserve said that even though the home market is still not very robust, it is showing movement in a positive direction in many areas, especially with starter homes that may whose purchasers may be spurred into action by that $8,000 tax credit that I have mentioned many times here.
As you can see in two recent posts about home sales, they did rise again for the third consecutive month nationally and for an even longer time here in Florida.
Another sign is that instead of half of the homes being distressed sales (ie short sales or foreclosures) as they were at the beginning of the year, now they only account for 31% of the home sales. Many sellers, banks and agents will be glad to see the end of foreclosures and short sales. At least at the high levels we have had for the past several years.
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. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.
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.