Today, 3/3/11, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.87% (4.83% in the southeast), down from 4.95% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.15%, down from 4.22% last week. A year ago the 30 year rate was 4.97%. Many were afraid that rates would not drop for a second week, but here we are. Good news for those buyers out there looking for bargains.
Freddie Mac says that the difference between today's average and the year's high point set just 3 weeks ago when rates were over 5% means that a person with a $200,000 mortgage will pay nearly $263 less per year in mortgage payments. Not a fortune, BUT I bet you can find a better use for that money than paying off interest. And over several years, it does add up. Especially over the life of a 30 year loan. And that is just the change over 3 weeks time!
Even with low interest rates, sales of both new homes decreased in January 2011 and the number of the pending sales of existing home also fell for a second month, according to the National Association of REALTORS.
Here in Zephyrhills, the pace is getting almost too busy. Not quite, but almost. I am working with several buyers right now who are in the middle of buying homes. Several are purchasing foreclosed homes, but many others are buying winter residences where they can escape winter for a few months each year. So despite what is going on in other parts of the US, in Zephyrhills, good agents are moving homes for their sellers and buyers!
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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