Today, 3/31/2011, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.86%, up from 4.81% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.09%, up from 4.04% last week. A year ago the 30 year rate was 5.08%.
Interest rates remain low, historically speaking. However, they did rise a bit more this past week, according to Freddie Mac's weekly survey. Inflation news was tepid and caused no worries this week. They say that the pace of inflation is the lowest it has been since 1960. At least that is some good news. Though I don't think that applies to the cost of gasoline. I am waiting for the reports of record profits by the oil companies. You know they are coming!
Because of the large number of sales of "distressed properties" (foreclosures and short sales) there is pressure to keep home prices on a downward trend. Though not as forcefully as it was a year ago. Last month, February 2011, these properties made up 39% of existing-homes sold. Once we get this inventory of distressed properties to decrease, then we will likely see home prices stabilize once more and even begin to rise again. It will happen, without a doubt. The question is WHEN? Let's hope it happens sooner rather than later. There are positive signs.
Winter visitors here in Zephyrhills, Florida are starting to slowly leave to go back north. Not as many as in decades gone by since a lot of them now make this their permanent home. But we still have lots of buyers out there looking. As summer approaches there will be a lot of people out there hoping to take advantage of the low interest rates and the equally low home prices. So I don't see a vacation in my future for several months 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.
I would also be happy to assist you in any way that I can. Just call John Elwell at CENTURY 21 Bill Nye Realty, Inc. : 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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