Today 5/29/08 Freddie Mac reported that after several weeks of downward movement of mortgage interest rates and with the average rates below 6% last week, mortgage interest rates for both 30 and 15 year fixed-rate loans have moved upward once again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.08% (6.08% in the southeast), up from 5.98% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.66%, up from 5.55% last week. A year ago the 30 year rate was 6.42%.
Concerns that the Federal Reserve might raise its interest rates later this year to combat inflation were the apparent reasons for this week's increase. Inflation expectations have increased in recent weeks according to a Freddie Mac spokesperson. Could this mean higher mortgage interest rates in the future?
Prices for exising homes continued to fall, but sales of new homes rose unexpectedly in April and the inventory of new homes available for purchase fell from 11.1 months worth to 10.6 months worth. Often less inventory means higher prices. In fact, in April the median price of new homes rose 1.5% from the same period in 2007. There is still a lot of inventory out there in resale and new homes, but any decrease is a positive thing and may help bolster prices. Time will tell.
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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