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After Several Weeks of Increases, Finally Average Mortgage Interest Rates Drop

By
Real Estate Agent with CENTURY 21 Bill Nye Realty, Inc.

Today, 4/15/10,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.07% (5.02% in the southeast), down from 5.21% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.40%, down from 4.52% last week. A year ago the 30 year rate was 4.82%.

Nice to see that after going up for 4 weeks in a row, the interest rates have at least taken a temporary dip.  Hope that this indicates that the upward trend is going to moderate some. Last thing we need now, in my humble opinion, is high interest rates that could put the brakes on a recovery.

The Federal Reserved reported that the annual consumer inflation rate was just 1.1 for the 12 months ending in April 2010. So at least prices are stable. Low mortgage rates have helped to keep the housing market stable and perhaps have stopped the "freefall" of prices that many markets saw. We see that in our markets too.

One of our big issues here in Zephyrhills, Florida is convincing the retirees that this specialized market did not take the hit that others did. Prices in retirement areas stayed relatively stable and we did not see huge drops. However, buyers come here and think they can offer 50% below the asking price based on what they see on the television news. That behavior will just not fly here. Unless a homeowner over paid for their homes or bought them just a short ago, they should lose little if any money when they sell. But that is true in even a normal market.

Good news is that lower home prices and lower interest rates are expected to go on for the foreseeable future. So take advantage of them if you can. Overall, most experts are saying that the worst is likely over. It could take a few years to get back to normal, but let's face it. That pendulum had swung a long ways in one direction. Makes sense that it will take time for things to swing back to the middle. Just be patient.

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

Posted by

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

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