Florida Real Estate Blog

Mortgage Interest Rates Ease a Bit: Freddie Mac

Today 5/15/08 Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans have moved a bit lower for 30 year notes and remained unchanged for 15 year loans. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.01% (5.97% in the southeast), down from 6.05% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.60%, unchanged from last week. A year ago the 30 year rate was 6.15%.

Recent comments from Federal Reserve officials seemed create an optimistic belief that things should improve economically later this year. This in turn lessened pressure on interest rates.

Regardless of the sad housing market, there were glimmers of hope concerning the overall economy. Retail sales rose twice as much in April than had been anticipated by the experts. They also revised their March figures upward. The consumer price index (CPI) rose less than expected thus easing fears of inflation problems on the horizon.

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.

Huge Homeowner Rescue Plan Passed by US House of Representatives

It is being reported from several media sources that yesterday the House of Representatives passed a bill that would give homeowners cheaper goverment-supported mortgages to 500,000 mortgage holders who find themselves in economic peril. The vote was 266 in favor and 154 against, with 39 Republicans crossing over to support the plan.

Of course, our good friend and President has said he will veto such a plan to aid people who are in danger of losing their homes and the investments they represent. (Maybe if our names were Haliburton, Chrysler, or Bear Stearns he would be more willing to help).

The plan would let the Federal Housing Administration accept an additional $300,000,000,000 in new mortgages so that borrowers could avoid foreclosure and refinance their homes. Sen. Barney Frank said that we are in a recession and "Diminishing the number of foreclosures is in the interest of not simply those who will avoid foreclosure, but people in their neighborhoods, in the cities in which they are located, and the whole economy."

The plan is to be used for those homeowners facing foreclosure and those who now owe more on their homes than the property is worth.

Bush says that we cannot fund a program to bail out lenders and speculators. He tends to forget that most of these borrowers were given bad advice by their lenders and most are not speculators, but are residents of the homes they bought. In other times it appeared that this administration always wanted to bail out businesses that were in trouble, especially big ones like banks/lender, etc. Now, it almost appears that since small homeowners are involved, Bush wants to do nothing to help them. Ignoring the trickle down effect this slump is causing related and unrelated businesses.

Oh well. Another case of infighting in the federal government. In the end it is unlikely that anything beneficial will come from that bunch. At least not until after the elections in the fall. Once the dust has cleared maybe (and that is a big MAYBE) something will happen. My bet is that in time the economy will pick up whether the government gets involved or not. Just like a cold. You can treat it, go to the doctor, or leave alone. In the end, it will improve all by itself.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

30 Mortgage Rates Up a Bit, 15 Year Rates Down a Bit: Says Freddie Mac

Today 5/8/08 Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans have moved VERY slightly, one up and one down. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.05% (6.04% in the southeast), down from 6.06% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.60%, up from 5.59% last week. A year ago the 30 year rate was 6.21%. These were changes hardly worth reporting.

Even though the housing market is still in the doldrums, the mortgage interest rates hardly wavered from last week's averages. This is partly due to better-than-expected economic news that showed that our economy still had some "staying power", said Freddie Mac spokespersons.

Less jobs were lost in April and the service and manufacturing sectors exceeded expectations. Worker productivity was also up. The housing market is still struggling, but we are a large country and some areas are doing worse and others better than the average. That said, prices continue to fall and lenders continue to tighten lending requirements (they should have done that about 3 years ago and we would not be in our current situation).

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.

Mortgage Interest Rates Continue to Edge Upward Despite Fed Rate Cut Says, Freddie Mac

Today 5/1/08 Freddie Mac reported that for the second week in a row average mortgage interest rates for 30 and 15 year fixed-rate loans have moved upward a bit. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.06% (6.02% in the southeast), up from 6.03% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.59%, up from 5.62% last week. A year ago the 30 year rate was 6.16%.

Due to a mixed bag of reports concerning a weaker housing market and higher inflation, the interest rates moved only slightly.

The Federal Reserve did lower its Funds Rate by 0.25% yesterday. It now stands at 2%. Some experts felt they might not lower the rate at all, based on inflation fears, as was mentioned here in my blog last week. Most pundits now believe that this will be the last rate cut for the near future, barring any serious threats to the economy that might force the Fed to act once again.

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.

Freddie Mac: Interest Rates Rise! Did You Get Caught?

Today 4/24/08 Freddie Mac reported that after several weeks of no upward movement of mortgage interest rates and with the average rate well under 6%, average mortgage interest rates for 30 and 15 year fixed-rate loans have moved upward once again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.03% (6.00% in the southeast), up from 5.88% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.62%, up from 5.40% last week. A year ago the 30 year rate was 6.16%.

How many of you were waiting to see if the rates had bottomed out? As many stock investors find out, knowing exactly when a market has bottomed out is a difficult thing to do. Sometimes you have to take a low market that looks good and make your move. Otherwise you risk having the market do an about-face on you and start back in the wrong direction. Some buyers are doing the same thing with house prices. They are betting that the home prices will drop further. Even though they are now often less than $100/square foot, a price that was common before the last hot market began, buyers wait on and on hoping they will go even lower. At some point, the prices will start back up again, and they will wish they had moved. Catching the market when it is at its absolute lowest is nearly impossible. Close to lowest is often good enough. In my area we are seeing inventories slowly drop and demand picking up a bit. At some point prices will follow interest rates and begin to climb again. If both interest and prices rise, that will truly be a double whammy.

The latest rise in interest rates is due to inflation fears. The Producer Price Index rose 1.1% in March. That was double what the experts had predicted.

It was also revealed that it now appears less likely that the Federal Reserve will drop interest rates substantially at its next meeting. Some of you that are waiting may want to speak with you lender or mortgage broker and find out what a half percentage point increase will cost you each month and over the life of your loan. You may be surprised.

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.

Little or No Movement in Interest Rates This Week: Freddie Mac

Today 4/17/08 Freddie Mac again reported that the average mortgage interest rates for 30 year fixed-rate loans have not changed a bit since last week's report and the rates for 15 year fixed-rate loans dropped just slightly. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.88% (5.86% in the southeast). The average interest rate for 15 year fixed-rate mortgages was 5.40%, down from 5.42% a week ago. A year ago the 30 year rate was 6.17%.

Fixed-rate interest rates held steady while Adjustable Rate Mortgage (ARM) rates decreased due to the belief that the Federal Reserve will drop rates further at their next meeting. Some believe that the chance that rates will be lowered is nearly 100% certain!

March housing starts were the lowest in 7 years, and both consumer and homebuilder confidence remains low. More and more on the news the "R word" ie recession is being heard. But no one seems to be able to say with any certainty if we are beginning it, in the midst of it, or on our way to clawing our way out of it.

On the positive side, as I have said in the past, if you have good credit or cash reserves, prices and interest rates both are at historically low levels. Usually when one is up the other is down, thus diminishing the benefits. When both are low, that is a time to consider making a purchase if you can. In a few years there will be a lot of people kicking themselves when a normal market returns and the current opportunities are no longer available. Millionaire investors buy when prices are low and money is cheap. Something to at least consider.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac: Average Mortgage Interest Rates Unchanged This Week

Today 4/10/08 Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans have not changed a bit since last week's report. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.88% (5.84% in the southeast). The average interest rate for 15 year fixed-rate mortgages was 5.42%. A year ago the 30 year rate was 6.22%.

The economic data that was released this past week was lukewarm at best with no earth-shaking revelations to stir-up the mortgage market and send interest rates up or down. Existing home sales were the lowest since record-keeping began in January 2001, perhaps an omen of similarly poor performance in the months to come. In addition, 80,000 additional jobs were lost in March.

Home prices in most urban areas continue to fall. However, in some isolated cases prices did rise. According to the National Association of REALTORs (NAR) over half of 150 major metropolitan areas experienced a drop in prices. Lansing, Michigan suffered the greatest drop, while Cumberland, Maryland bucked the trend and had the strongest growth.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Mortgage Fraud Up 42% Last Year, But More Is Caught Before Transaction Is Completed

The Financial Crimes Enforcement Network last week released a report that indicates that suspicious activity has been on the rise nationwide. There was a 44% increase in 2006. In 2006, there were 37,313 mortgage fraud SARs filed. The final total for mortgage fraud SARs filed in 2007 was 52,868, an increase of 42 percent.

Mortgage fraud is a continuing problem for lenders, and also consumers. Just as shoplifters at Walmart raise the prices for all of the honest shoppers. Those who commit mortgage fraud make it more expensive and difficult for the rest of us to get the loans we need.

The most common types of suspicious activties were: misrepresentation of income or assets followed by forged documents, misrepresentation of a borrowers' intent to occupy a property, and inflated appraisals.

So be vigilant when applying for financing. Make sure that your mortgage broker is not playing "fast and loose" with the rules. Report any of his or her actions that seem inappropriate or downright dishonest to you. Not only will you keep yourself out of legal and financial trouble, but you will be helping others who will be applying for loans in the future. Mortgage fraud is not victimless crime, nor is it a matter of little importance. The authorities take this type of illegal activity very seriously.

You can also find out more about home buying and mortgage fraud, etc at the Housing and Urban Development site: http://www.hud.gov/buying/index.cfm            English
http://espanol.hud.gov/buying/index.cfm        Español

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

Source: The Financial Crimes Enforcement Network Press Release

Average Mortgage Interest Rates Creep Upward Says Freddie Mac

Today 4/3/08 Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans have begun to move upward once again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.88% (5.86% in the southeast), up from 5.85% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.42%, up from 5.34% last week. A year ago the 30 year rate was 6.17%.

If you have good credit and can qualify for a conforming loan (not subprime) your interest rates will still be on the low side, historically speaking. However, average rates did creep up a bit based on the belief that the economy might be a little stronger than had been predicted. Consumer spending was revised upward for the last quarter of 2007 and February's personal income growth was reasonably strong. A strong economy can fuel inflation fears and that helped push rates up a bit this past week.

According to a Freddie Mac spokesperson "Housing, however, still continues to be a drag on the economy. In 2007, residential fixed investment shaved nearly a full percentage point off of GDP, the most since 1980. In February, median existing house prices (excluding condominiums and co-ops) were 16.0 percent below the peak in June 2007 and median new home prices were 7.0 percent below the record set in March 2007. Moreover, new construction of one-family homes was 61.5 percent below its all-time recent peak in January 2006."

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Mixed Report On Mortgage Interest Rates from Freddie Mac This Week

Today 3/27/08,  Freddie Mac reported that the average mortgage interest rates for 30 year fixed-rate interest rates have dropped slightly while interest rates for 15 year fixed-rate mortgages rose slightly. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.85% (5.84% in the southeast), down from 5.87% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.34%, up from 5.27% last week.

Though the results were mixed, they were so small as to be insignificant. Most of the economic indicators provided results that had been predicted. No surprises to cause the interest rates to fluctuate more vigorously. For example, the index of leading economic indicators fell for the 5th straight month and consumer confidence hit a five year low.

Regarding the housing market, prices continue to fall overall. A yearly price decline of 11.4% was noted from January 2007 to January 2008. However, the National Association of REALTORs noted that sales of existing homes did increase in February of this year. The lower prices are making homes more affordable for many buyers, and the lower interest rates are making them somewhat easier to finance. In face, NAR's "Home Affordability Index" was at its highest in 5 years. Perhaps a light at the end of a long tunnel.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac: Fed Interest Rate Drop Helps Lower Mortgage Interest Rates

Today 3/20/08,  Freddie Mac reported that the average mortgage interest rates for 30 year and 15 year fixed-rate interest rates have dropped. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.87% (5.84% in the southeast), down from 6.13% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.27%. down from 5.58% last week. Pretty good decreases. So again both the 30 year fixed-rate and the 15 year fixed-rate mortgages are below 6%.

A man called me today to complain that interest rates were up and things were terrible. Well, rates under 6% look pretty good to me. And they are. Many of you can remember mortgage interest in the 1970's that was nearly 20%! Now 6% looks pretty good. Home prices are still low as well. That is good for home buyers, and in a round-about way, good for sellers as well, especially if they have owned their homes for more than 4 years or so.

Various things happened this week to help the rates drop. Inflationary pressures were determined to be weaker than had been predicted. The Consumer Price Index (CPI) remained unchanged for the first time since November 2006.  And as many of you heard in the news or here on the blog, the Federal Reserve cut its funds rate by 0.75% based on slowing consumer spending and poor employment news.

The combination of all of these factors worked together to force interest rates down this week. The Fed has indicated that it will take further action if it appears to be necessary.

Later in the spring we are all supposed to get a check from the government that is supposed to spur on the economy. However, as far as the housing market goes, I do not think that a check worth from $600 to $1,200 will have any effect at all. It is too little, too late at this point. Something to protect persons with unbearable mortgages might be a better route. A one-time infusion of a little cash is unlikely to help these troubled homeowners in the long run.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Federal Reserve Drops Its Rate by 0.75%

Today the Federal Reserve dropped its funds rate by 0.75%, so that it now sits at 2.25%. Many had predicted that they would drop it a full percentage point, but none-the-less, this was a significant drop. The rate now sits at the lowest it has been since December 2004. The Dow Jones reacted by going up 420 points. The Fed indicated that it would take further steps in the future if it felt they were necessary and would help the country economically. On Thursday we will see if these cuts have had an effect on mortgage interest rates.

I am unsure that these decreases will have a drastic effect on our current situation. The mortgage interest rates have been VERY low for months and the prices of homes have been at record lows as well. Yet the housing market drags. In my opinion, business and/or the government need to do something to change the mind set of the people in this country. If we believe times are bad, we will react based on those beliefs, even if it is just our perceptions, and not reality. Will getting a $600 to $1,200 check in May do the trick? Again, I have my doubts. We need a leader, most likely from the government, that can capture the imagination of the nation and make us believe that there is a light at the end of the tunnel. I am way too young to remember, but my parents and grandparents used to say that FDR had the ability to do that. Maybe that is what we need again. Someone who makes us see the hope and possibilities that are all around us.

In any case, we will see if these tactics by the government will help, hurt, or have no effect. Time will tell.

Will the Federal Reserve, As Rumored, Drop Interest Rates by a Huge Amount??

We are being told that, in an attempt to further stimulate the economy, the Federal Reserve will reduce one of its key interest rates. This after another large reduction just a few weeks ago. Many think that they will drop it a full percentage point which is almost unprecedented. Others think the change will be more limited, though still a substantial alteration.

Question is, will this do anything to stimulate our economy? How about the checks we are all going to get in the next few months? Those will be drops in the bucket and I doubt a $600 tax rebate will do much at all. Perhaps let us pay off a few bills that are overdue, but not much more.

Just like in your own household, the worst time to have financial difficulties is when you have run up a large debt. That seriously limits your resources that could help bail you out. Have you taken a look at our national debt lately. It is at record highs! Now along comes this recession and we have no savings to fall back on and we are in debt up to our ears. So now we will go even further into debt by giving everyone money that we will have to pay back eventually. To top it off, I heard that the government is spending $42,000,000 just to send us letters telling us that we are going to get the money!! Common sense is sorely lacking in Washington at the moment.

In any case, let's wait and see what the Fed does and if it does have any effect at all. I truly hope it does, but guess I have serious doubts that it will.

Freddie Mac: Follow the Bouncing Interest Rates, Up We Go Again

Today 3/13/08, after a drop last week,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans moved upward again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.13% (6.08% in the southeast), up from 6.03% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.60%, up from 5.47% last week. A year ago the 30 year rate was almost exactly as it is today, 6.14%. Funny how we seem to go round-and-round sometimes.

Freddie Mac is reporting that interest rates are up for ALL mortgage products this week. However, the average 30 year mortgage interest rate over the past 11 weeks, was still the lowest it has been since 2005.

Lower interest rates and lower home prices combined to create a more affordable housing market. (Seems like I mentioned this once or twice in the past months). January 2008's pending home sales held steady, though it had been predicted that they would drop as much as 1%. Many believe that this "steady" trend will continue when February's figures are released.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac: Interest Rates Drop Some, But Overall Economy Does Not Look So Hot!

Finally, after several weeks of seeing the average interest rates climb higher and higher, today 3/6/08,  Freddie Mac reported that the average mortgage interest rates for 30 year and 15 year fixed-rate interest rates have dropped a bit! Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.03% (6.03% in the southeast), down from 6.24% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.47%. down from 5.72% last week.

Mortgage interest rates played "follow the leader" as weak economic indicators, including lower consumer confidence, slowing in the manufacturing sector, and job market declines, pulled the total economic picture to a lower level.

The median prices of new homes fell 15.1% in January and that was the biggest drop on record. As you have heard me say in the recent past, they cannot go much lower. It will be impossible to for them to build homes that they have to sell for less than it cost them to construct. Residential construction fell 19.7% over the past 12 months.

Now, if that is not enough sour news, tonight all of the news stations are trumpeting the fact that for the first time in ages, homeowners on average owe more on their homes than they have equity in them. Since for many Americans their homes are their biggest investments, this is not good news.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Average Mortgage Interest Rates Continue to Climb says Freddie Mac

Today 2/28/08,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans moved upward again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.24% (6.22% in the southeast), up from 6.04% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.72%, up from 5.64% last week.

Again, these do not appear to be insignificant increases. Not so long ago rates were below 6%. At that time I predicted that we were reaching a low spot and that there might not be much more of a decrease at that point. Unfortunately, I was correct and rates have gone up now for several weeks, though they are still pretty low historically speaking. Home prices continue to be low. Those people who bought and financed a home purchase a month ago got a good break on interest rates and on their prices.

The surge in refinancing that took place while rates were low in January 2008 will likely subside unless the rates begin to reverse their recent trend and begin to drop again. The Federal Reserve is hinting at further interest rate cuts in March.

At the same time the US Commerce Department is reporting that the economy nearly came to a stop in the latter part of 2007. Annual economic growth was just 2.2%, the lowest in 5 years.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Average Mortgage Interest Rates Jumps Above the 6% Level, Says Freddie Mac

Today 2/21/08,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans moved upward again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.04% (5.97% in the southeast), up from 5.72% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.64%, up from 5.25% last week. These jumps were larger than those of the recent past. Those that did not consider locking in rates while they were in the lower range or that did not think of refinancing, may be kicking themselves now. Remember, I told you that at some point either the interest rates or the prices would rise. And the interest rates are the more likely to go higher.

Interest rates are now back to nearly where they were at the start of 2008. Though the rates on adjustable rate mortgages were a little below what they were at the start of the year. But keep in mind, unless you can predict the future, if rates go way up, an adjustable could turn out to be a bad idea. But without doubt, some buyers will not learn from the past and will only look at the short-term rates. A mistake in my opinion.

The Federal Reserve reduced its forecast of economic growth for this year. Single-family construction in January fell to the lowest level since 1991. Starts were especially low in the west which experienced the slowest construction pace since 1959!!

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac: Mortgage Interest Rates Increase, But Just Slightly

Today 2/14/08,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans moved slightly upward. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.72% (5.68% in the southeast), up from 5.67% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.25%, up from 5.15% last week.

Lately interest rates have been fluctuating within a very narrow range and are still historically pretty low, considering that home prices are also lower than they have been. Usually either the interest rates are high and home prices low, or vice versa. For some time now, both have been low. That's good for buyers who can take advantage of it with good credit ratings or cash reserves. Sadly, lenders continue to tighten their requirements for loans and that decreases the number of persons who can buy homes. Sad because it was the lenders who talked buyers in the past to get risky subprime loans. And it is these types of loans that have helped ignite the slump we are now in.

For its part Freddie Mac said that there was not a lot of economic information released in the past week and what was available continued to send uncertain messages about the short-term economic situation. Labor productivity rose while production costs were lower than expected. But pending existing home sales fell again in December. It is felt that this is an omen of lower sales in January and February as well. This helped keep mortgage rates relatively stable.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac Says Average Mortgage Interest Rates Virtually Unchanged This Week

Today 2/07/08,  Freddie Mac reported that the average mortgage interest rates for 30 year and 15 year fixed-rate are nearly unchanged from a week ago! Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.67% (5.62% in the southeast), down from 5.68% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.15%. down from 5.17% last week. Very little movement indeed. A year ago the former was sitting at 6.28% and the latter at 6.02%

Freddie Mac says that the stability this week closely mirrored what was happening in the Treasury bond markets. In addition, recent news on the economy shows that it continues to less than robust at this time.

Non-farm payroll jobs fell by 17,000 positions in December and that was the first drop since August of 2003.

Also, a survey done by the Federal Reserve showed that lenders were continuing to tighten their standards for borrowers. Do you think perhaps they learned a lesson from all of those sub-prime loans they were touting not so long ago?? 53% of the lenders surveyed said they were continuing to tighten their standards, up from 41% in October of 2007. 70% feel that credit quality for prime residential mortgages will continue to fall during the current year.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Didn't I Warn You Last Week?? Freddie Mac Average Mortgage Interest Rates Went Up This Week

I could say " I told you so", but I won't. Today 1/31/08,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans moved higher after several weeks of big drops. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.68% (5.63% in the southeast), up from 5.48% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.17%, up from 4.95% last week.

If you recall, last week I mentioned that sooner or later interest rates, and/or home prices would begin to rise since lower limits had to be hit at some point. Prices are getting there, especially with the developers. But there is still some room for further drops, especially with those sellers of existing homes who are holding out for the brass ring that is not going to show up. This week it was the interest rates that took a jump. Even with large drops by the Federal Reserve of its interest rates.

Keep in mind that interest rates are still historically low and those buyers with good credit and some down payment money can have lenders fighting for their business. So shop around amongst reputable companies (not those that have hand-written signs along the road), get a good REALTOR working for you, find a home that you like with a good price, and make your move.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Federal Reserve Drops Interest Rate 0.5%, Less Than A Week After Similar Drop

Just a week ago the Federal Reserve had a late night special meeting and decided to drop their interest rates by a whopping 0.75%. Now just a week later they have dropped the rates an additional 0.50%!

This combined drop of 1.25% places the Fed's rate at just 3%, the lowest it has been since June of 2005. General opinion is that the cuts were made due to continued fears of the housing slump and the trickle down effect this has on the economy as a whole. Even with these large cuts, I heard one commentator say that he believed even further cuts were in the future. We will just have to wait and see.

With last night's passage of Amendment 1 here in Florida which promises property tax relief and now more interest rate cuts, it will be interesting to see if these two events work to stimulate real estate sales, at least here in Florida.

Tomorrow, January 31, I will report on Freddie Mac's current interest rate averages. Keep in mind that these most recent drops by the Fed may not have time to show up in Freddie Mac's report.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

Mortgage Interest Rates Plummet For Another Week Says Freddie Mac

It may be hard to believe, but today 1/24/08,  Freddie Mac reported that the average mortgage interest rates for 30 year and 15 year fixed-rate interest rates dropped AGAIN substantially! Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.48% (5.46% in the southeast), down from 5.69% a week ago. This is the lowest it has been since March of 2004! The average interest rate for 15 year fixed-rate mortgages was 4.95%. down from 5.21% last week and for the first time in a long time it has gone below 5.0%.

Reports of lower housing sales in 2007, as well as a drop in building permits for future construction were indicators of a slowing economy and this helped cause another big drop in rates..

The interest rate drop was also helped by the Federal Reserve's drop in one of its key interest rates that I mentioned recently. They dropped it 0.75%. The drop along was large and it was also unusually in that the Fed did not wait until one of its regular meetings to act. The last time they took a similar unexpected action was just after the attacks of September 11, 2001. This time their cuts appear to have helped lower mortgage interest rates as well. When the banks have to pay less for money they get from the Fed, they can charge us less when we borrow it.

I hate to keep repeating this like a broken record, but with interest rates and home prices BOTH at low levels, this is a time for buyers who have been sitting on the sidelines to think about making a move. At some point either interest rates or home prices will start to rise, perhaps significantly. Both have lower limits below which they cannot practically go beyond. For example, developers will not build and sell homes that they cannot sell for enough money to cover their costs. Have we reached that point? In my opinion, we are close to it, if not already there. Do not wait too long or you might miss out on some great deals. As for how low interest rates may drop, their are many that think they can still go a bit lower if the Fed feels that it is necessary to stimulate the economy. But again, there will be a limit below which they will not be able to go.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac: And the Interest Rates Just Keep Dropping!!

Today 1/17/08,  Freddie Mac reported that the average mortgage interest rates for 30 year and 15 year fixed-rate interest rates dropped AGAIN! Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.69% (5.65% in the southeast), down from 5.87% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.21%. down from 5.43% last week. Last year the 30 year rate was sitting at 6.23% and went even higher during 2007. The 15 year fixed-rate interest was at 5.98%. Needless to say, we have seen some serious drops in the past several weeks.

Downward pressure on interest rates came from lackluster retail sales in November and December. Especially in the areas of building supplies and garden/lawn equipment (what a surprise in the middle of winter?).

The drop in interest rates was apparently across the board and affected all types of loan products, fixed-rate and adjustable-rate products. Freddie Mac says that for the first time in several years, the interest rate on a 15 year fixed-rate mortgage is actually lower than that of a 1 year adjustable-rate loan.

Repeating what I mentioned in last week's report, with interest rates and home prices BOTH at low levels, this is a time for buyers who have been sitting on the sidelines to think about making a move. At some point either interest rates or home prices will start to rise, perhaps significantly. Both have lower limits below which they cannot practically go beyond. For example, developers will not build and sell homes that they cannot sell for enough money to cover their costs. Have we reached that point? In my opinion, we are close to it, if not already there. Do not wait too long or you might miss out on some great deals.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac: Lowest Average Interest Rates Since September 2005!!

Today 1/10/08,  Freddie Mac reported that the average mortgage interest rates for 30 year and 15 year fixed-rate interest rates dropped again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.87% (5.85% in the southeast), down from 6.07% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.43%. down from 5.68% last week. The 30 year rate has not been seen in 2 and a half years.

A meager 18,000 new jobs were created in December and unemployment jumped to 5%. (When I lived in Europe 12% was not unheard of). Also non-manufacturing business activity showed very little expansion during the same periord. Freddie Mac also noted that the National Association of REALTORs, of which I am a member, reported that existing home sales in November were down and that this would likely signal a similar drop in December. All of this negative news was the apparent motivation for the drop in mortgage interest rates. Funny how bad news makes rates drop and good news makes them jump.

Due to recent drops in interest rates many homeowners are now again refinancing their homes. It has been reported that this activity is at its highest rate in four weeks. We will have to see if it continues. Let's hope though that these borrowers are refinancing to get lower rates and not to borrow more money. It is a dangerous game to borrow more than your home is worth. And there are many people out there who bought their homes in the boom in just that situation. So if you refinance, go for the lower interest rate, but beware of increasing the size of your loan amount.

With interest rates and home prices at low levels, this is a time for buyers who have been sitting on the sidelines to think about making a move. At some point either interest rates or home prices will rise, perhaps significantly. Do not wait too long or you might miss out on some great deals.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac: Starting the New Year With Lower Average Interest Rates

reported that the average mortgage interest rates for 30 year and 15 year fixed-rate interest rates dropped for the start of the New Year. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.07% (6.06% in the southeast), down from 6.17% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.68%. down from 5.79% last week.

As has been the case throughout most of 2007, mixed signals were evident at the start of 2008 concerning the general economy and the housing market. On one hand it was reported that for the first time in 5 months consumer confidence was up in December and that they had positive expectations for the coming months. On the other hand, a negative one, manufacturing activity decreased which could be an omen of slower economic growth for the start of 2008. Talk about mixed signals! You sometimes have to wonder how anyone does (or can) analyze this data and come to any significant conclusions. Especially concerning a country as large and diverse as ours.

New home sales fell in November while existing home sales showed a slight increase (more mixed messages). Freddie Mac is predicting that for the first quarter of 2008 total home sales will continue to decline. After that point they feel a slow recovery may occur. They are forecasting that a total of 5.09 million housing units will be sold this year, a decrease of 11% over 2007.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

30 Year Fixed-Rate Mortgage Interest Up Slightly, 15 Year Fixed-Rate Mortgage Interest Unchanged

Yesterday 12/27/07,  Freddie Mac reported that the average mortgage interest rates for 30 year fixed-rate loans were up just a bit and 15 year fixed-rate interest rates remained unchanged. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.17% (6.17% in the southeast), up from 6.14% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.79% the same as it was last week.

Long-term interest rates on bonds went up a bit, and the 30 year mortgage rate followed suit. If you have an adjustable rate mortgage whose interest is tied to these securities you may see your monthly payment rise a bit.

Housing prices continued to decline for the 15th straight month. 16% over the past year. Of 20 major housing markets, 17 showed a decrease. Freddie Mac feels that tightened credit requirements and the continuation of the falling housing market will probably keep consumer spending at a lower level. It will be interesting to see how willing consumers were to spend their cash during the Christmas holidays.

Locally it does appear that more homes are selling, but only if their owners are pricing them realistically. We still have many overpriced resale homes that will likely stay on the market for severl months. I have seen several lately that have been on the market over 400 days! The buyers are telling these sellers that their homes are not correctly positioned in the market. Eventually the message will get through. Meanwhile several developer/builders are marketing brand new homes for around, and even under, $100 per square foot. Prices unseen since 2003.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

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.

Freddie Mac Says Average Mortgage Interest Rates Edge Upward

Today 12/20/07,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans were up just a bit. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.14% (6.12% in the southeast), up from 6.11% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.79%, up from 5.78% last week.

Apparently these small increases were caused by stronger inflation reports than had been predicted and more positive retail sales figures for November, balanced by data that suggested that the housing market would remain weakened for a few more months