A complete list of all open houses scheduled in the Back Bay of Boston during the weekend of August 7, 2011.

Above, 280 Commonwealth Ave #102, Back Bay, Boston, Massachusetts. Paul Whaley of Coldwell Banker Residential Brokerage is the listing agent.

Making lemonade out of lemons, the one good thin got come from the economic uncertainty hitting the financial markets this week is that mortgage loan rates have dropped. To record lows.

The average 30-year, fixed mortgage rate rose to 4.39%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.39 percent with an average 0.8 point for the week ending August 4, down from 4.55 percent, last week. Last year at this time, the 30-year FRM averaged 4.49 percent, so rates are lower.

A $400,000, 30-year, fixed-rate mortgage at 4.39 percent would run you approximately $2,000 per month in loan repayments. This is down from $2,038, last week, $38 per month less, and $24 less per month compared to last year, when it would have cost you $2,024 per month.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Treasury bond yields fell markedly after signs the economy was weaker than what markets had previously thought allowing fixed mortgage rates to follow this week with the 15-year fixed and 5-year ARM setting new historical lows. The economy grew 1.3 percent in the second quarter, which was below the market consensus forecast, and first quarter growth was cut to less than a quarter of what was originally reported. In fact, the first half of this year was the worst six-month period since the economic recovery began in June 2009. Moreover, consumer spending fell 0.2 percent in June, representing the first decline since September 2009.

“On a positive note, there were indications that the housing market is firming. Real residential fixed investments added growth to the economy in the second quarter after subtracting from growth over the first three months of the year. The CoreLogic® National House Price Index rose for the third straight month in June (not seasonally adjusted) and was the first three-month gain since June 2010. Finally, pending existing home sales rose for a second consecutive month in June and was up nearly 20 percent from June 2010 when the housing tax credits expired.”

Are you thinking of buying a home this fall? Talk to your mortgage broker today to find out your options for locking in a low rate.

Which Boston neighborhood do you live in? Are you sure?

The Boston Globe unravels the mystery of Boston’s neighborhoods’ borders in an article today.

It’s a common debate/discussion in the local real estate community. Real estate agents are accused of, at times expanding the borders (to give more appeal to listings) and shrinking them (to exclude things such as crime and blight). For instance, the South End’s borders are fluid and ill-defined. To agents, it’s often Massachusetts Ave used as the border to the west, except when they have listings on the other side and want to get buyers interested.

The historic record is little help since, as the Globe points out, much of Boston is made of landfill. You can look at old maps, but look to far back and all you’ll see is marshland. Many neighborhoods didn’t even exist before 1850.

Is Kenmore Square in Back Bay or The Fenway, or is it its own neighborhood? What about St. Botolph Street? Is it Back Bay or South End?

Another agent friend of mine had a client who called him up after closing on a condo purchase on Mass Ave. He had just received his first mail at his new address, and the label said, “Mass Ave, Roxbury, Massachusetts”. He freaked out, “I don’t live in Roxbury, do I??”

One answer was, “Yes.” Another was, “No.” The third was, “Why does it matter?”

But, of course, to some it does. A lot. Buying a home means you’re investing not just in a property but in a neighborhood, in the city. A lot of money is riding on your choice, both when you buy and when you sell. Perception is not the same as reality.

For me, I’ve used “South End” and “Roxbury” at different times for the area between Mass Ave and Melnea Cass Blvd. Roxbury doesn’t always work because I think of that as Dudley Square and points around there. I went to Northeastern University in the 1980′s and we always considered the school to be in the Fenway. Since then, they’ve invested millions in development that’s turned the campus around from Huntington to Tremont and Columbus, and now it’s as much a part of Roxbury as the other neighborhoods.

So, I don’t know.

Image above from the Boston Public Library‘s flickr photo stream.

There are plenty of condos for sale in Boston for under $417,000, the standard “conforming rate” for home mortgage loans. But, many buyers in the Back Bay, South End, and Beacon Hill neighborhoods end up with “jumbo” loans, which are for higher amounts, and almost-always come with higher interest rates.

Interestingly, jumbo rates are very low right now, compared to conforming loan rates, as the Wall Street Journal pointed out recently.

The spread between the average loan rates is just 0.43% right now. This is great news if you’re looking to buy soon.

What will happen later this summer and in the fall is unknown, but the common held wisdom is that the jumbo rates will rise. This is because:

Starting in October, the federal government will start easing its support of jumbo loans as large as $729,750, which it began as an emergency measure three years ago. The new limits will vary by location, but will drop to $625,500 in top-tier markets such as New York, Los Angeles and Washington, D.C.

I believe Boston’s limit will also drop to $625,500, but check with your mortgage lender.

Getting a larger loan with a great rate will also require you to have an excellent credit score and be able to put down at least 20% at closing. If you can, you may be able to get a great, fixed-rate loan that you could have only dreamed about.

The average rate on a 30-year fixed rate mortgage loan increased just one basis point to 4.51% in the latest Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.51 percent with an average 0.7 point for the week ending June 23, up from 4.5% last week. Last year at this time, the 30-year FRM averaged 4.58 percent.

A $400,000, 30-year, fixed-rate mortgage at 4.51 percent would run you approximately $2,029 per month in loan repayments. This is $3 more than last week and $17 in monthly savings compared to last year, when it would have cost you $2,046 per month.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Interest rates on 30-year fixed mortgages hovered around 4.5 percent for the fourth consecutive week following mixed reports on the strength of the economy. First quarter economic growth was revised up in the final estimate, but growth in consumer spending stagnated in May while April’s figure was revised downward; consumer expenditures account for roughly two-thirds of the nation’s gross domestic product.

“Meanwhile, there were some signs of improvement in the housing market. In April, the S&P/Case-Shiller® 20-city composite home price index rose 0.7 percent, representing the first monthly increase since July 2010. However, much of the improvement reflected the seasonal increase in homebuying over the spring-summer period. Pending existing home sales rebounded in May, exhibiting the largest monthly increase since November 2010.”

Conforming loan limits are scheduled to be reduced in the fall. This means those buying in the $400,000′s to $600,000′s may see higher rates at that time. Let me know if I can provide more information.