Today, 8/14/2014, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 4.12% down a tad from 4.14% last week. The average interest rate for 15 year fixed-rate mortgages was 3.24%, down a little from 3.27% last week. A year ago the 30 year rate was 4.40%.
We have seen little change in the rates people pay. They have been pretty stable for several months. And the low levels help make homes more affordable for more people.
The problem many areas are seeing is the lack of sufficient inventory. I have several buyers who are ready to buy a home either via a mortgage or by paying cash. But there are just no homes out there that meet their requirements. This will change in coming months, but I think it will be a very long time before we find that the inventory of homes in our area is larger than the demand for them. Of course, sellers like this scenario better since it helps support higher prices. Something to keep in mind.
If builders pump new homes into the market, that could help temper higher prices based on low inventories. Maybe! But for now, as interest rates remain low, home prices inch higher.
Freddie Mac's spokesperson said, "Mortgage rates were down slightly amid a week of light economic reports. Of the few releases, retail sales were virtually unchanged in July after a 0.2 percent increase in June, ending five months of increases. Excluding motor vehicles and parts, retail sales were up 0.1 percent last month."
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. in Zephyrhills, Florida: 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.