The average interest rate for a 30-year fixed mortgage fell to 4.69 this week, beating the previous record of 4.71 recorded last December. This is the lowest average rate since tracking began in 1971. Rates for 15-year mortgages fell to 4.13 percent, the lowest since 1991. 5-year ARMs hit 3.84 percent.
While this won’t help those who owe more on their home or condo than it’s worth, and are therefore unable to refinance, if you’re on the fence about buying your first home or you’ve been waiting for the bottom of the market to buy a second home now may be the time to jump.
This comes among the bad news that new home sales fell 33 percent in May to the lowest level since 1968. Since the home buyer tax credit expired April 30th this is not a complete surprise, but the decrease is sharper than expected. New home sales in May made up about 7 percent of the market. Thankfully existing-home sales remain at elevated levels due to the stabilizing housing market and historically low rates. Let’s hope that trend continues.
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