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As I Had Feared, Interest Rates Continue Upward Movement According to Freddie Mac Survey

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

Today 4/8/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.21% (5.15% in the southeast), up from 5.08% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.52%, up from 4.39% last week. A year ago the average 30 year rate was 4.87%. Just a couple of weeks ago it had been well below 5%!

Positive news about employment numbers spurred the yields to go higher for bonds and this in turn pushed up the interest rates on mortgages. The economy "added" 162,000 jobs which was the largest gain in 3 years. Though some will say that census workers added a lot to this number. And others will say that just to keep even we need to add jobs. But at least the large losses we had over the past year or so seem to have disappeared or slowed. There were also revisions to January and February's numbers increasing the previous totals by 61,000 employers. Also, exluding government workers, private payrolls rose for the third month in a row. A little more good news.

The home buyers tax credit apparently is having an impact on the market, though to be honest, I have had only one customer that has been able to take advantage of it. So I am not sure we will see a lot of change when it disappears later this month. Let's hope not anyway. I want this positive overall momentum to continue.

As I reported earlier on this blog, the National Association of REALTORS has also stated that pending home sales jumped 8.2% in February, higher than had been forecast. In my own market area I can report that personally I am now already at the point, in terms of sales, at which I ended 2009! I cannot speak for everyone, but there does appear to be a clear sense of "getting back to normal", at least in our little part of the United States. Hopefully, the same is happening where you live as well.

However, keep in mind that now interest rates are climbing a bit. If prices also stablize, and even begin to rise, those super bargains that now exist could be just a dream in a matter of months. Home affordability has never been better.

Keep in mind that the home buyers tax credit deadline arrive at the end of April 2010. So time is running out if you are one of those potential homeowners who is eligible and wants to use the credits. For more information go to: http://www.realtor.org/home_buyers_and_sellers/extended_home_buyer_tax_credit_how_to

Do keep in mind that we are a very large country. So data that comes 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 me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  You are also welcome at my webpage:  www.jelwell.century21bnr.com

Posted by

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

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