Freddie Mac: Mortgage Interest Rates Sink Lower

Today 8/23/07,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans dropped substantially. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.52% (6.49% in the southeast), a fall from 6.62% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.18%, down from 6.30% last week.

The cause of the drop was partly due to the decision of the Federal Reserve to cut its lending rate to banks in an effort to calm fears of the credit crunch that has been so much in the news lately.

"Interest rates on conforming long-term fixed-rate mortgages and one-year adjustable-rate mortgages trended down by about one-tenth of a percent in the past week," said Frank Nothaft, Freddie Mac's chief economist. "This is as a result of yields on Treasury securitites coming down, and the Fed's decision to cut the discount rate," he explained.

A year ago the rate on 30 year mortgages was 6.48% and the rate for 15 year mortgages was 6.18%.

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.