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Freddie Mac: Average Mortgage Interest Rates Mostly Unchanged Due to Lack of Inflation Worries

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

Up & Down Arrow - JTE Today, 6/16/2011,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.50%, up from 4.49% a week ago. The average interest rate for 15 year fixed-rate mortgages was 3.67%, down from 3.68% last week. A year ago the 30 year rate was 4.75%

There was little worry about inflation this week and this fosterd the lack of any significant change in mortgage interest rates. According to Freddie Mac the "core producer price index" only went up 0.2% and the "core consumer price index" only went up 0.3%. Both well within expectations. I suspect the drop in gasoline prices also helped to moderate inflation as well. Though lower, I still do not consider gas to be a bargain and find it hard to see how the oil companies can justify even these prices. But that is just my own personal opinion and has nothing to do with Freddie Mac.

According to Freddie Mac, the amount of money tied up in home mortgages has fallen lately. Reportedly by more than $930 billion from March of 2008 to March of this year. They say that much of this decrease was caused by second mortgages.

So, not a lot of news this week, except for the uproar over Rep. Weiner, which had no effect on interest rates. This lack of any big excitment kept rates almost frozen.

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 JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. : 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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