Interest Rate Update

It’s been a very gentle roller coaster ride for interest rates over the last few months but rates have recently dropped again. Primarily impacting these rates recently was the decision by the Federal Reserve to continue its current rate of bond purchases which had the effect of rates sliding back down. However, at some point even without other factors involved, the Fed will taper their bond purchases and rates will rise. It’s only a matter of time and something that anyone looking to buy, or sell for that matter, should be fully aware of as they look into the future & make housing decisions.

Here are the rates from last week’s Freddie Mac press release:
30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.7 point for the week ending September 26, 2013, down from last week when it averaged 4.50 percent. A year ago at this time, the 30-year FRM averaged 3.40 percent. 15-year FRM this week averaged 3.37 percent with an average 0.7 point, down from last week when it averaged 3.54 percent. A year ago at this time, the 15-year FRM averaged 2.73 percent.

Those buyers looking at government loan programs (FHA/VA/USDA) are in the neighborhood of 4.125% with no points for a 30-year FRM.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.