Freddie Mac reported (May 2010) that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.93%.....down from 5.00% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.30%, down from 4.36% last week. A year ago the 30 year rate was 4.86%.

Freddie Mac reported that this is the 4th week in a row that interest rates have went down. Freddie Mac also made reference to the National Association of REALTORs report on home sales. It said that median home prices were getting better in more local areas in the first quarter of 2010. "On a year-over-year basis for the 152 areas the association reports on, 91 metropolitan areas had positive growth in the first quarter of this year. This compares to 67 areas showing positive annual growth in the 4th quarter of 2009, and only 30 cities in the 3rd quarter of last year."

Remember the $8000 tax credit? Well, even though the tax credit for buyers ended on April 30 for most people, a low interest rate like we have this week more than covers the tax benefits with lower monthly payments. Not to mention the lower total interest amount you will pay over the 30 year life of the loan. You could save tens of thousands! What a huge incentive to get off the fence!

So don't worry too much if you missed out on the credit. That was just $6,500 to $8,000. The low interest rates we have now will more than make up for that tax credit in just a few years. And, then it will keep on saving you money for decades to come. Now is the time to buy!