The average 30-year, fixed mortgage rate increased just a bit this past week, up from 4.81% on a national basis to 4.86%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.86 percent with an average 0.7 point for the week ending March 31, 2011, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 5.08 percent, so good news.

A $400,000, 30-year, fixed-rate mortgage at 4.86 percent would run you approximately $2,113 per month in loan repayments. This is $12 more per month when compared to last week but $53 in savings compared to last year.

This week, 15-year fixed rate mortgages averaged 4.09 percent with an average 0.7 point, up from last week when it averaged 4.04 percent. A year ago at this time, the 15-year FRM averaged 4.39 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Fixed mortgage rates rose slightly for a second week in a row, but continue to remain quite low. Low rates have benefited from relatively benign inflation reports. Inflation as measured by the 12-month growth in the core price index for consumer spending, a metric preferred by the Federal Reserve, is hovering near the lowest pace since 1960 when this data series began.”

Sounds as though Mr Nothaft thinks rates might remain steady but I’m not so sure we can assume that to be true.

I don’t know what would happen to consumer confidence and the real estate market if rates went up over 5%. That would affect a lot of people’s thinking, I think.

A complete list of all Sunday open houses scheduled for the Back Bay neighborhood of Boston on March 27, 2011. Included are addresses, prices, descriptions, and times of open houses.

If you would like more information or to set up a private showing for any of these fine homes, please contact me.

Above, 7 Albermarle Street #II, Back Bay, Boston, Massachusetts. Mary Ann Tecce of Wm Raveis Real Estate is the listing agent.

The average 30-year, fixed mortgage rate increased just a bit this past week, up from 4.76% on a national basis to 4.81%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.81 percent with an average 0.7 point for the week ending March 24, 2011, up from last week when it averaged 4.76 percent. Last year at this time, the 30-year FRM averaged 4.99 percent, so good news.

A $400,000, 30-year, fixed-rate mortgage at 4.76 percent would run you approximately $2,101 per month in loan repayments. This is $12 more per month when compared to last week but $43 in savings compared to last year.

This week, 15-year fixed rate mortgages averaged 4.04 percent with an average 0.7 point, down from last week when it averaged 3.97 percent. A year ago at this time, the 15-year FRM averaged 4.34 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Mortgage rates were up this week compared to last, but still remain at relatively low levels. The rate uptick was related to higher than anticipated inflation data for February and ongoing geopolitical concerns. The 12-month growth rate in the consumer price index rose 2.1 percent in February, compared to 1.6 percent in January; however, most of the increase was due to food and energy prices, which tend to be volatile. The core index rose 1.1 percent, slightly up from 1.0 percent in January.

“The housing market recovery experienced a setback during the start of this year. Existing home sales fell 9.6 percent from January to February and were down 2.8 percent from February 2010. Sales of new homes declined for the second consecutive month in February to record lows dating back to 1963. Even new construction on one-family homes fell 11.8 percent in February to the third slowest pace since 1959.”

Do you think rates will continue to rise as the economy recovers and/or because the federal government keeps borrowing more and more money? Will the current unease in the world (natural and man-made) bring fear to the financial markets?

There are certain trends in the Boston real estate and condominium sales markets.

The spring is the busiest time for homes to be sold in downtown Boston. This is true in the country, as a whole. Mostly, this is due to the fact that most home purchases are by families with children. Parents want to buy and close on a home before the beginning of summer so that they can enjoy the warm weather and be settled in before school starts in the fall.

This flows through to the local real estate scene even though there is a much-higher number of single- and dual-income couples without kids buying.

It’s almost a self-fulfilling prophecy – more people buy in the spring so more people list their properties in the spring and more people look to buy in the spring because there are more properties on the market in the spring.

I looked at under agreement data for the past eighteen months in the downtown Boston, Boston Proper neighborhoods. The data was collected for 30-days at a time, so it’s a rolling trend chart.

As you can see, last spring, 2010, was the busiest time for downtown Boston real estate transactions. Two hundred properties were under agreement for a thirty day period in early-to-mid April. Closings scattered throughout the following six weeks.

There was a similar increase in under agreement activity in October and November. There is, every year, as people look to buy and close before the end of the year and before it begins to snow.

This year, 2011, you can see a similar increase in activity during the past six weeks. In fact, it almost exactly matches last year’s trend of under agreements, but at a lower level of transactions. This seems to be an accurate reflection of the market – we are seeing a lower number of sales compared to last year, by about 30%. Many people believe last spring’s spike in activity was due to the pending expiration of federal tax credits which may have prompted buyers to purchase real estate when they otherwise would have waited a month, two, six, or twelve.

This is good information to keep in mind if you’re buying or selling a condo. If you’re a seller, list now, before summer starts. If you’re a buyer, your best chance of finding a home that matches your needs is now, when the inventory is at a higher level. You might have more competition for homes, since everyone else is looking, but you will also find a better selection from which to choose.

Happy Spring!!

Well, dogs can’t read, you know.