Today, 11/29/2012 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.32% up from 3.31% last week. The average interest rate for 15 year fixed-rate mortgages was 2.64%, down from 2.63% last week. A year ago the 30 year rate was 4.00%.
Hardly any change worth mentioning this week. Just a tad up and that is all. The low rate bonanza for many is continuing. What is down is inventory. I actually had two people in a bidding war this week and many local agents are complaining about a lack of inventory. This is going to work to keep prices stable and cause them to rise as fewer and fewer homes become available to buyers. So keep that in mind. Less conventional homes, less foreclosures and even less short sales. In the end this could be a good thing. However, it will mean higher prices. And if interest rates begin to rise, that will be a double whammy for buyers if they wait just a little too long. So be warned.
Let's hope some of the idiots we have in Washington don't force issues that will hurt the middle class so that we have a fiscal crisis that hurts all of us. Sometimes we have to wonder just what the heck they are thinking up there when many of us need help and want the economy to continue to improve for the majority of the country, not just the wealthiest of Americans.
Today Freddie Mac's spokesperson said, "Mortgage rates were virtually unchanged this week amid growing concerns around the fiscal cliff. Although low mortgage rates failed to boost new home sales in October, year-to-date sales are up 20 percent compared with 2011 volumes, and there are growing signs of a turnaround in house prices. The S&P/Case-Shiller® national home price index (seasonally adjusted) rose 5.2 percent over the first three quarters of this year. In addition, all 20 of the city indices (seasonally adjusted) had positive growth over the first 9 months, led by a 17.9 percent increase in Phoenix. More recently, the Federal Reserve's November 28th regional economic review, known as the Beige Book, noted that 10 of the 12 districts reported the market for single-family homes continued to improve leading into mid-November."
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.