Yesterday 12/27/07, Freddie Mac reported that the average mortgage interest rates for 30 year fixed-rate loans were up just a bit and 15 year fixed-rate interest rates remained unchanged. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.17% (6.17% in the southeast), up from 6.14% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.79% the same as it was last week.
Long-term interest rates on bonds went up a bit, and the 30 year mortgage rate followed suit. If you have an adjustable rate mortgage whose interest is tied to these securities you may see your monthly payment rise a bit.
Housing prices continued to decline for the 15th straight month. 16% over the past year. Of 20 major housing markets, 17 showed a decrease. Freddie Mac feels that tightened credit requirements and the continuation of the falling housing market will probably keep consumer spending at a lower level. It will be interesting to see how willing consumers were to spend their cash during the Christmas holidays.
Locally it does appear that more homes are selling, but only if their owners are pricing them realistically. We still have many overpriced resale homes that will likely stay on the market for severl months. I have seen several lately that have been on the market over 400 days! The buyers are telling these sellers that their homes are not correctly positioned in the market. Eventually the message will get through. Meanwhile several developer/builders are marketing brand new homes for around, and even under, $100 per square foot. Prices unseen since 2003.
Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.
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.