Today, 9/30/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.32% (4.37% in the southeast), down from 4.37% a week ago. The average interest rate for 15 year fixed-rate mortgages was 3.75%, down from 3.82% last week. A year ago the 30 year rate was 4.94%. Glad to see them going down again. After a couple of weeks of upward movement I was afraid that some buyers might miss out on the lowest rates in a LONG time. If you would like to see how the rates have fallen since the start of 2010, you can download a chart by clicking on the following link: Download Average Mortgage Interest Rates since Jan. 2010
Consumer confidence in the country fell, which caused the yield offered on bonds to fall and that took mortgage interest down as well. Funny, since just yesterday it was reported that in Florida, consumers were more confident, partly due to the end of the BP oil spill. Oh well, as long as buyers can get good rates, this is fine with me. Over a 30 year period, each drop adds up to some big savings for buyers that make purchases now. It also increases the amount of house then can now buy as opposed to when rates were nearly 6%.
Freddie Mac's Deputy Chief Economist said:
"Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90-days delinquent or worse fell to 3.16 percent in August from 4.76 percent a year prior and was the lowest rate since June 2008, according to the S&P Experian Consumer Credit Default Indices."
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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