Today, 7/7/2011, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.60%, up from 4.51% last week. The average interest rate for 15 year fixed-rate mortgages was 3.75%, up from 3.69% last week. A year ago the 30 year rate was 4.57%. So after several weeks of low rates with no movement, rates might be starting to climb! Did you take advantage of them when they were in the basement? I hope so!
Freddie Mac's spokesperson did not have much to say this week. Interest rates followed Treasury yields as those instruments moved upward. But looking back to the past, rates are still much lower than they have been for decades, thus making homes more attainable for many buyers.
He gave the example that if you took all of the interest rates of the outstanding mortgages during the first quarter of this year, the average interest rate would be just slightly below 6%. If a home buyer purchased a home today using current rates, he/she would save $169 off each monthly payment on a $200,000 30 year loan. Not too shabby.
Of course the question is, will new banking regulations and requirements make it hard for people to qualify for loans. We already know that those people who recently lost their homes to foreclosures or short sales, or those who went through bankruptcies will see those circumstances hang around their necks for years to come and make obtaining financing difficult. That is somewhat understandable. But for others, it would seem unfair for banks or laws to put the opportunity to own a home out of reach. They should be able to find a "balance" in there somewhere. Don't you think so?
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: firstname.lastname@example.org You are also welcome at my webpage: www.jelwell.century21bnr.com