Today, 1/26/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.98%, up sharply from 3.88% last week. The average interest rate for 15 year fixed-rate mortgages was 3.24%, up from 3.17% last week. A year ago the 30 year rate was 4.80%!
Even though rates did go up for both 30 year and 15 year fixed-rate mortgages, the fact is that the rates have stayed below 4% for quite a while. That is good for buyers who want to keep short-term and long-term costs down, and also for sellers who want motivated buyers.
A Freddie Mac spokesperson said that the rates went up this week because the housing markets in the United States ended 2011 on a positive note compared to previous years. New construction rose in December 2011 by 4.4%, a 470,000 annualized rate. That was the best rate since April of 2010! Existing home sales have also been increasing on a regular basis. At the end of 2011 they had increased by 5.5% for a total of 4.61 million homes sold during last year! That is a lot of residences. Pending home sales were also up in November AND December averaging the highest levels since the spring of 2010.
All of this good news is what pushed the mortgage interest a bit higher. I always find it interesting that bad news makes rates go lower and good new pushes them higher. Oh well, they are still very low and there are some good deals to be had for those who are ready to buy.
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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