Interest Rate Update

Interest rates are still at historic lows so if you are looking to buy or refinance now is the time to do it.  No one can tell you where they will be tomorrow, in a week, month, or year but we do know that they are at all time lows.

Let’s talk about the weekly interest rate survey that comes out on Thursdays.  This survey is for the average interest rate for the week ending, with points being paid, and a summary of the survey.  Too many people just read the headline that interest rates are at 4.72% just as it was this past Thursday, June 10th, 2010. 

If you go to FreddieMac.com and click on the “Current Weekly Survey” link towards the bottom left it will take you to this:

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.72 percent with an average 0.7 point for the week ending June 10, 2010, down from last week when it averaged 4.79 percent. Last year at this time, the 30-year FRM averaged 5.59 percent.

So what does that mean in English?  It means that rate may no longer exist.  It is an average and it doesn’t take into account for any fluctuation in interest rates on that day, Thursday.