Today 4/1/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.08% (5.06% in the southeast), up from 4.99% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.39%, up from 4.34% last week. A year ago the average 30 year rate was 4.78%.
Just like last week, long-term bond rates went up and the mortgage interest rates followed them. The mortgage interest rates for 30 year fixed-rate loans now sit at their highest level since the first week of 2010. But they still are historically low. Many of us can remember when they got to nearly 20% and when we felt lucky to get an 8% mortgage. Keep that in mind. Those rates were in effect not all that long ago!
The decline of home prices continues to slow and more metropolitian areas are stabilizing and some are actually showing that prices have begun to rise again. We all knew this would happen. Was just a matter of when it would occur and where it would start first. These things run in cycles, just like the stock and bond markets. Problem this time was that that last peak was too high! Boy, was it!
To back up these facts, Freddie Mac pointed out that the S&P/Case Shiller 20 City Composite Index® showed that we had the smallest 12 month price decreases since 2007. Nine out of the 20 cities actually showed growth. Little-by-little, it would appear, things are slowing turning around. Let's all hope so. Let's also hope that many people learned some lessons over the past few years.
Keep in mind that the home buyers tax credit deadline arrive at the end of April 2010. So time is running out if you are one of those potential homeowners who is eligible and wants to use the credits. For more information go to: http://www.realtor.org/home_buyers_and_sellers/extended_home_buyer_tax_credit_how_to
Do keep in mind that we are a very large country. So data that comes 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.
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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