Today, 11/6//2014, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 4.02% up from 3.98% last week. The average interest rate for 15 year fixed-rate mortgages was 3.21%, up from 3.13% last week. A year ago the 30 year rate was 4.16%.
Freddie Mac's spokesperson said, "Mortgage rates continued to rise this week with the 30-year fixed-rate mortgage eclipsing the 4 percent mark. The rate increases coincide with real Gross Domestic Product beating consensus expectations of 3.0 percent growth by growing at an annualized rate of 3.5 percent in the third quarter. The ISM Manufacturing Index also beat expectations registering 59 in October, up from September's reading of 56.6."
The economy is improving in so many areas, and strangely enough, higher interest rates are a result of this. However, with the GOP now in charge of the House and Senate, I do have concerns. In the past, when this has occurred, deficits have mounted as tax receipts plummetted and revenues decreased.
Only time will tell how this change will affect the housing market. But we sure do not need another bubble like occurred during the last GOP administration. However, keep an eye on interest rates so that you do not get caught paying a higher rate than you have to. It was not all that long ago when 6.5% was considered a low rate!
The interest rates have been lower for sometime now. However, buyers are not stampeding yet. Part of this is due to the fact that our inventories is still pretty low. But some just seem to not be able to make up their minds. They will, however, regret that decision after the coming elections when rates could increase significantly and home prices could rise. Time will tell.
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 local lender you can find several at my website: www.jelwell.century21bnr.com
You can also contact 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. in Zephyrhills, Florida: 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.
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