Today, 12/22/2011, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.91%, down from 3.94% last week. The average interest rate for 15 year fixed-rate mortgages was 3.21%, unchanged from 3.21% last week. A year ago the 30 year rate was 4.81%.
This week home buyers got an early Christmas present as the interest rate for 30 year fixed-rate mortgages fell to new low levels that we have never seen before in our times. Imagine being lucky enough to lock in that rate for THIRTY YEARS! Add to that the fact that homes are selling at "bargain basement" prices and you have affordability levels that are unheard of. Some sellers who say they want to wait to sell "until prices go back up" are missing a crucial point. When their home is worth more, the next home they buy will also cost more. And interest rates will likely be much higher. Add into that higher insurance costs, property tax amounts, etc. and, for many, it is not always a smart move to wait until the price of your current home goes up. Consider your own situation carefully before you decide to wait it out. That could, could, be a mistake. Think about it!
This week, Freddie Mac's spokesperson said, "Rates on 30-year fixed mortgages have been at or below 4 percent for the last eight weeks and now are almost 0.9 percentage points below where they were at the beginning of the year, which means that today's homebuyers are paying over $1,200 less per year on a $200,000 loan. This greater affordability helped push existing home sales higher for the second consecutive month in November to an annualized pace of 4.42 million, the most since January. In addition, new construction of one-family homes also showed a back-to-back monthly gain in November to the largest increase since June. Moreover, homebuilder confidence in December rose to its highest reading since May 2010 according to the NAHB/Wells Fargo Housing Market Index."
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 Licensed in Florida.
Comments(0)