Today, 3/24/2011, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.81%, up from 4.76% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.04%, up from 3.97% last week. A year ago the 30 year rate was 4.99%. .
Even though rates did rise this week, they are still at historically low levels that make a home purchase more affordable for a lot of people. I can remember not all that long ago when we thought 6% and 7% were great bargains! The researchers following inflation saw it rise more than had been expected and that is one of the main reasons that rates rose slightly from last week to this one. The main culprits causing inflation to rise were food and, of course, fuel costs! The latter was no surprise if you have been watching the gas pumps. I still have not figured out how if something happens in the MIddle East on a Wednesday, the gas that was in the ground on Tuesday suddenly jumps 10 cents a gallon??? We all know the answer to that one, don't we?
As you have read in a couple of my recent posts, sales of existing homes were down in February (though not in Florida), and construction of new homes was also down around the USA. It fell 11.8% in February to one of the slowest paces since 1959. But I have to wonder if the bad weather didn't also play a part in that. Hard to build homes when much of the country was experiencing blizzard after blizzard. Typically, in northern states less construction goes on in the winter. But less new construction is not necessarily a bad thing for home sellers, agents, and the real estate industry in general. We have to get those inventory levels down.
Here in Zephyrhills, the pace is still pretty busy. I am working with several buyers right now who are in the middle of buying homes. Several are purchasing foreclosed homes and getting some GREAT deals. And many others are buying winter residences where they can escape the cold weather for a few months each year. So despite what is going on in other parts of the US, in Zephyrhills, good agents are moving homes for their sellers and buyers!
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 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 John Elwell at CENTURY 21 Bill Nye Realty, Inc. : 813-783-4444 or e-mail me at: email@example.com You are also welcome at my webpage: www.jelwell.century21bnr.com