Today, 9/12/2013, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 4.57% unchanged from last week. The average interest rate for 15 year fixed-rate mortgages was 3.59%, unchanged from last week. A year ago the 30 year rate was 3.55%. Nerly a full percentage point lower than this year.
After the interest rates on mortgage arrived at the point between 4% and 5%, they kind of stalled. Which is at least better than having them go higher at this point when the market is recovering.
I am reading reports saying that possibly, POSSIBLY, the increase in rates has hurt home sales. Well, from my point of view, these rates are still incredibly low. We all remember when we thought that 6% and 5% loans were a wondferful deal. If you can remember back to the 1980's you can remember a time when getting an 9% loan was considered a desirable goal.
What the higher rates may do is make buyers reassess their buying goals. They may have to be a bit more conservative and settle for a two-car garage instead of a three-car garage. Or increase the size of their down payments. For most people this will simply be a bump in the road. Though I would still advise people to buy while rates are still where they are. At some point, we may see them go back to the 6% mark. Do you want to be the one that waited too long and ended up with a higher interest rate on a 30 year loan when you could have had what are still historically low rates??? Something to think about.
In Zephyrhills, we are often not bothered much by the interest rates. Many of my customers are retirees who are buying either winter homes or permanent retirement homes. And an awful lot of them pay CASH! So interest rates be damned! But we also have many, many others who are younger and must rely on financing. For them it is extremely important that they stay abreast of current conditions and the forecasts for the future.
Freddie Mac's Vice President said, "Mortgage rates were little changed this week following a mixed employment report. For example, the economy added 169,000 jobs in August, which was below the market consensus forecast, and revisions subtracted another 74,000 from the prior two months. Meanwhile, the unemployment rate fell to 7.3 percent which was the lowest since December 2008."
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 local lender you can find several at my website: www.jelwell.century21bnr.com
You can also contact 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.