Today 2/25/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.05% (5.02% in the southeast), up from 4.93% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.40%, up from 4.33% last week. A year ago the average 30 year rate was 5.07%.
Bond yields moved higher and interest rates followed their lead ending up just above the 5% mark again after some recent drops. Mixed economic signals (I sure to get tired of hearing that "mixed" linked to economic conditions. Don't you??) did not help. For example, the Producer Price Index went up, whie the same could not be said for the Consumer Price Index. And consumer confidence was at its lowest point since last April 2009.
Homes sales and prices were also a "mixed bag" and no clear picture seems to be forming. New homes sales slowed in January, but to me that does not seem so surprising. Especially in the colder states where winter is never a great time to sell homes and also because there are so many bargains out there on resale homes. Why buy a new home when you can get a home that is only 4 years old at a bargain basement price?
Hopefully the economic crystal ball will become clearer in the future. As I have said before, it will be interesting to see if things change a lot when that home buyer tax credit expires soon. For me I see no change since to this point, none of my buyers have been able to use it. In the winter I sell a lot or regular homes, but we do a big business as well with "snowbirds" down here looking for winter residences. I just got another contract on one of my listings in a 55+ park. Whoopee!!
Do keep in mind that we are a very large country. So data that comes 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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