Today, 1/14/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.06% (5.00% in the southeast), down from 5.09% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.45%, down from 4.50% last week. A year ago the 30 year rate was 4.96%.
Since interest rates on fixed-rate loans are still historically low, many people are taking the opportunity to refinance their homes and lower their payments. Over the past 3 months or so, over 75% of the applications for new loans were for refinancing purposes. So at least someone is making use of these extremely attractive rates. Now when are the home buyers who also get low prices PLUS a federal income tax credit going to get off the fence. Time is running out quicker than many think.
According to Freddie Mac's spokesperson, “The Federal Reserve recently reported positive news in both the housing market and the overall state of the economy in its January 13th regional economic report, which spanned the last few months of 2009. Economic activity improved in 10 of its 12 districts. Home sales, especially for lower-priced homes, increased due in part to the homebuyer tax credit and house prices appeared to have changed little since its last report.”
Don't forget that the home buyers tax credit will not last forever and will disappear quicker than you think. Also, as the inventory of new and resale homes goes down, the prices should stabilize and start to rise. Reportedly this has already begun in several markets around the country. So be aware that the benefits that buyers now enjoy may be distant memories in much less than a year's time. No one can be 100% sure of the future. But, where we are right now is a pretty good place for many of you whom are considering purchasing a home. So look at all of your options and do what is in your best interests. Perhaps renting is still the way to go for you. But maybe, just maybe, now is the time to make your move into the home of your dreams. Only you can say.
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 me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You are also welcome at my webpage: www.jelwell.century21bnr.com
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