Today, 9/20/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.49% down from 3.55% last week. The average interest rate for 15 year fixed-rate mortgages was 2.77%, down from 2.85 last week. A year ago the 30 year rate was 4.09%.
As I mentioned last week, the Federal Reservie reported that it would keep interest rates low for the forseeable future and would be buying back "mortgage-backed" securities also known as Quantitavie Easing in an effort to further stimulate the economy. This had the effect of lowering interest rates to "all-time record lows". It is predicted that this will help in the housing recovery. And of course, as housing recovers, all of the related markets will as well, ie furniture stores, plumbing supplies, lawn equipment, and on and on. Not to mention that property tax bases increase or improve. And wouldn't it be nice if that vacant derelict home next to yours with the overgrown lawn were purchased and maintained well??? That helps keep the value of your home up and appreciate!
Additional good news is that new home construction increased in August, increasing by 5.5% and existing home sales increased 7.8% during the same time period. Both positive reports. Let's hope there are more in the future.
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: firstname.lastname@example.org You are also welcome at my webpage: www.jelwell.century21bnr.com Licensed in Florida.