Today, 2/23/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.95%, up from 3.87% last week. The average interest rate for 15 year fixed-rate mortgages was 3.19%, up from 3.16% from last week. A year ago the 30 year rate was 4.95%! At some point interest rates had to start rising again, and this week they did! Not significantly, but buyers should take note and watch further movements VERY carefully. You do not want to get stuck with high interest rates when still historically low rates are still available. A word to the wise is sufficient! Or so they say.
A Freddie Mac spokesperson said, "New data releases this week suggest the housing market is continuing to gradually improve. Loans that were seriously delinquent (90 days or more past due plus the foreclosure inventory) fell to 5.3 percent of prime mortgages at the end of 2011, representing the lowest quarterly share since the start of 2009, according to the Mortgage Bankers Association. The Census Bureau reported new residential construction starts in January outpaced the market consensus forecast, led by condominiums and apartment buildings, and December's figures had upward revisions. Finally, existing home sales were at the strongest pace in January since May 2010, according to the National Association of Realtors®"
To me, that looks like a lot of good news, especially after all of the "doom and gloom" of the past several years. It is quite true that our recovery will be slow, but there will be some parts of the country that will out-pace others in terms of the speed at which they get back on track. Here's hoping that Florida will be one of those pace-setters. There are some signs that this could indeed be true. Time will tell. Fingers crossed here.
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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