Today, 12/29/2011, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.95%, up from 3.91% last week. The average interest rate for 15 year fixed-rate mortgages was 3.24%, up from 3.21% last week. A year ago the 30 year rate was 4.86%!
Though interest rates did increase this week, they are still below 4% and that makes homeownership much more within the grasp of many home buyers. Imagine locking in that low rate for the next 30 years! I am betting that in just a few years we will look back at these rates and shake our heads in disbelief. Any takers???
This week, Freddie Mac's spokesperson said, "Mortgage rates ended the year hovering near historic lows in an already affordable housing market. For instance, the seasonally-adjusted S&P/Case-Shiller® 20-City Composite home price index in October was the lowest seen since March 2003. The largest hit areas were Las Vegas with the lowest reading since January 1997 and Atlanta which was since June 1998. It's not surprising then that over 5 percent of households in December plan to purchase a home over the next six months, the highest share since May, according to The Conference Board."
"5% of households planning on buying homes in the next 6 months?? That sure sounds good to me. And if they can capitalize on the low home prices and low interest rates, I am betting that it will sound good to a lot of lucky home buyers as well. Try to be in that 5% if you can. This opportunity may not come around again in your lifetime.
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 - REALTOR 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 Licensed in Florida.
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