Just when it looked like the economic relief package that our government and others around the world had put into place to stop the market free-falling, now US mortgage interest rates take a large jump! Today 10/16/08 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 6.46% (6.51% in the southeast), up from 5.94% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.14%, up from 5.63% last week. Those are not minor jumps! A year ago the 30 year rate was 6.40%.
Interest rates rose to an 8 week high partly due to further signs that the US economy is slowing, as evidenced by the fall of retal sales for the third month in a row. Not a good omen for the upcoming holiday shopping season when many retail outlets make the bulk of their yearly profits. For home buyers, a 0.5% interest rate increase can make a big difference over the life of a 30 year mortgage.
The Federal Reserve reported that all 12 of their districts reported that they were seeing economic activity weakening, and that many of the consumers in those districts were becoming more pessimistic.
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.
Comments (0)Subscribe to CommentsComment