Today, 7/8/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.57% (4.60% in the southeast), down from 4.58% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.07%, down from 4.04% last week. A year ago the 30 year rate was 5.20%. Lower interest rates continue to make homes very affordable, along with the very reasonable home prices in many parts of the country.
Freddie Mac reports that since interest rates are so low, those homeowners that can, are refinancing in large numbers during the past three months. Since the start of April 2 out of every 3 loan applications has been for refinancing. Can you blame people with rates this low!
They also reported that overall the financial picture for many households was improving. Household net worth rose by nearly $1 trillion in the first quarter of 2010, past due credit card accounts fell to the lowest levels since 2002, and "aggregate debt burdens" down to a level not seen since 2000. Of course, those are averages and not everyone has such a rosey picture. But it is good news to hear that at least the averages are moving up rather than down.
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.