Tight credit standards have prevented many people from purchasing or refinancing their homes and therefore low mortgage rates that we have achieved have not been as effective as we had hoped.
Austin, TX (PRWEB) November 03, 2011
Homes.org, a fast growing real estate search portal, has released analysis of mortgage rates which shows rates remained largely unchanged despite the announcement of an official deal to help Europe's struggling economy and President Obama's announcement that there will be changes in the rules for home loan refinance in an attempt to make it easier for homeowners that are underwater. While the 15-year fixed rate stayed the same the 30-year fixed rate fell by just .05%.
4.10% - average rate for a 30-year fixed rate mortgage
3.38% - average rate for a 15-year fixed rate mortgage
Although these rates are low compared to five years ago, they aren't the lowest on record. That number was met 3 weeks ago when the 30-year fixed rate was 3.94% and the 15-year fixed rate was 3.26%.
However, this week there are a few announcements and events taking place that could affect interest rates. Most influential may be the two-day Fed meeting that commenced Wednesday. Fed Chairman Ben Bernanke made closing statements which included comments on interest rates. Most notable were his comments on mortgage rates. Bernanke stated that, "tight credit standards have prevented many people from purchasing or refinancing their homes and therefore low mortgage rates that we have achieved have not been as effective as we had hoped. So monetary policy may be somewhat less powerful in the current context than it has been in the past, but nevertheless it is affecting economic growth and job creation."
There will also be a Jobs Report on Friday which the markets will be watching closing. New job numbers for October are predicted to remain steady, keeping the unemployment rate at around 9.1% nationwide.
Homes.org is predicting that there won't be much movement in mortgage rates, however there may be a slight increase due to Europe's economic situation which remains unresolved and Bernanke's statements on the lack of effect lowered interest rates are having on consumers' ability to purchase and refinance homes.
Homes.org is a fast growing real estate search portal that offers users much more than MLS listings. Homes.org gives users access to a rich collection of resources, including but not limited to, real estate listings, home owner finance tools and home service tools. Homes.org brings buyers, sellers and renters important information about the current markets and intelligent tools by partnering with real estate professionals from around the country. Homes.org is a subsidiary of Star Nine Ventures, Inc. headquartered in Austin, TX.
About Star Nine Ventures®
Star Nine Ventures® is an Austin-based, marketing-driven venture creation company targeting a wide range of national business-to-consumer online marketplaces. Star Nine's core mission is to build businesses that provide exemplary consumer experiences and unparalleled customer service.