Didn't I Warn You Last Week?? Freddie Mac Average Mortgage Interest Rates Went Up This Week

I could say " I told you so", but I won't. Today 1/31/08,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans moved higher after several weeks of big drops. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.68% (5.63% in the southeast), up from 5.48% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.17%, up from 4.95% last week.

If you recall, last week I mentioned that sooner or later interest rates, and/or home prices would begin to rise since lower limits had to be hit at some point. Prices are getting there, especially with the developers.  But there is still some room for further drops, especially with those sellers of existing homes who are holding out for the brass ring that is not going to show up. This week it was the interest rates that took a jump. Even with large drops by the Federal Reserve of its interest rates.

Keep in mind that interest rates are still historically low and those buyers with good credit and some down payment money can have lenders fighting for their business. So shop around amongst reputable companies (not those that have hand-written signs along the road), get a good REALTOR working for you, find a home that you like with a good price, and make your move.

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.