Freddie Mac completed a mid month survey for the month of March on 30 year fixed rate mortgages, and reported that rates were stable at 4.95%. This is a slight decrease from the 1st week of March where mortgage rates were 4.97%. Rates reported at the same time last year were marginally higher at 5.03%.
The small slide in interest rates were a welcome sight as the numbers overall for the housing market have continued to decline in the past 3 months. Seasonal adjusted figures show that sales of new and pre-owned homes have stalled. Seasonally home sales for the winter tend to slow due to severe weather.
At a recent press conference President Obama stated the month of March saw 160,000 new jobs created. The positive numbers seem to be a step in the right direction. It is believed that the massive increase of jobs is the result of temporary workers that were hired as part of the national census work force. The necessity to create permanent positions is paramount, It is only through these permanent positions that the housing market will see a reduction in foreclosures. It is the hope of the administration that the national unemployment rate will continue to fall. As summer gets closer there is an expected surge in construction jobs. This boost in employment is expected to have a direct effect on impending foreclosures.
Interest rates on 15 year fixed rate mortgages also fell to 4.32% from the prior years reporting of 4.33%. Five year Treasury indexed hybrid adjustable rate mortgages averaged at 4.05%, down from the 1st week of March where rates were 4.11% and 4.99% one year prior.
Rates are expected to hold, or decrease slightly for the next couple of months. This is due in part to conflicting housing reports across the nation. Frank Nothaft, Freddie Mac vice president and chief economist stated "pending existing homes sales fell 7.6% in January, well below the market consensus of a 1% gain".
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