Special offer

Mortgage Interest Rates Continue to Circle the Lowest Levels of 2014

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

Down Arrow - JTEToday, 11/13//2014,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 4.01% down from 4.02% last week. The average interest rate for 15 year fixed-rate mortgages was 3.20%, down from 3.21% last week. A year ago the 30 year rate was 4.35%.

Freddie Mac's spokesperson said, "Fixed mortgage rates were slightly down on mixed results from October's employment report. While the unemployment rate declined to 5.8 percent, nonfarm employment rose by 214,000 jobs, which was below consensus expectations. Net revisions for payroll employment in August and September added 31,000 more jobs to the initial readings."

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. Another conflice which some legislators are pushing for, could cause severe damage to our economy and thus the housing market. Even destruction of the Affordable Care Act could not only endanger lives, but put the purchase of a home out of reach for many families. Try taking $1,000 out of a family's budget each month and see what that does to their ability to then take on a mortgage. Something to consider.

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.

Posted by

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comments (0)