Today 10/25/07, Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans both dropped. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.33% (6.29% in the southeast), down from 6.40% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.99%, down from 6.08% last week.
A Freddie Mac spokesman said that worries about slow economic growth over the coming months caused interest rates to drop. They are unsure how much the housing slump will affect the overall economy. Some reports suggest that manufacturing figures for October will come out lower.
Sales of existing homes dropped to their lowest level since January 1998 and are a result of the credit tightening that has taken place in recent months.
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.
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