Today, 10/29/09, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.03% (5.01% in the southeast), up from 5.00% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.46%, up from 4.43% last week. A year ago the 30 year rate was 6.46%.
Overall, interest rates for 30 year fixed-rate loans have averaged just under 5% for this year. Historically pretty darn good! This the lowest 10 month average since this type of record was begun in 1971.
This year, 7 out of 10 mortgage applications were for refinancing of existing loans as people seek to lower their monthly payments and take advantage of these really low rates.
Though today it seemed like everyone was touting the end of the slump, the latest data to come in was a mixed-bag, including:
- National Association of REALTORs report that existing home sales jumped 9.4% in September.
- The sales of NEW homes fell 3.6% during the same period.
- But stronger demand has helped to lower the level of homes in the market's inventory, and this can help to stabilize prices.
So a little good, and a little bad. But it appears to me that on a balance scale, the weight of positive news is tipping toward the recovery side. Things will take time to get back to normal, but it will eventually happen.
Locally, we are seeing a real pick-up in activity as more of our winter visitors return. The phone rang all day today. I wrote two offers on homes that were accepted and signed another set of homeowners to sell their home for them. This is kind of early for this type of increase in activity. One can only hope it is a good omen of things to come.
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.