Today 7/16/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.14% (5.11% in the southeast), down from 5.20% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.63%, down from 4.69% last week. A year ago the 30 year rate was 6.26%.
A Freddie Mac spokesperson said that the reduction in rates since the start of June 2009 would mean that a person with a $200,000, 30 year, fixed-rate loan would pay $56 less each month with the current lower rates.
Even though energy costs were up slightly, compared to the same time last year they were down quite a bit. Supposedly this was the biggest drop in a 12 month period since 1950! Kind of makes sense though. Remember that it was not all that long ago when we were paying $4.00/gallon? $2.45 sounds cheap now. The government and company incentives also boosted auto sales which was a plus. In addition, industrial production slowed the smallest amount in 8 months. So, a mixed bag, as usual, but if it results in lower interest rates on homes, that is good for buyers and sellers.
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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