More optimistic consumers, lower housing prices, and bargain mortgage rates may have contributed to the 10.4 percent jump in pending home sales in October.
Austin, TX (PRWEB) December 06, 2011
Homes.org, a fast growing real estate search portal, has released this week's analysis of mortgage rates which found that there was a slight increase in rates at the start of this week, with the 30-year fixed rate ticking upward by .02%. This increase brings the rate back up to where it was before last week's drop.
Current interest rates are:
4.00% - average rate for a 30-year fixed rate mortgage
3.3% - average rate for a 15-year fixed rate mortgage
Consumer activity continued last week with Cyber Week bringing in more than $6 billion. This comes right as the Consumer Confidence Index announced a 15 point rise in November to 56 points. While it is a move in the right direction it's still a good deal below the average during a health economy. However, with overall consumer debt shrinking and marked improvement in industries such as auto sales, the impression is that consumer confidence may be on the rise. Even Freddie Mac vice president and chief economist Frank Nothaft said, "more optimistic consumers, lower house prices, and bargain mortgage rates may have contributed to the 10.4 percent jump in pending home sales in October to the strongest pace since November 2010 and may bode well for future home sales."
There was also promising news in Friday's Jobs Report which showed 120,000 new jobs were created which was in line with expectations. However, the announcement that the unemployment rate had dropped to 8.6% came as a surprise. It was a result of 315,000 people leaving the work force and the drop isn't expected to have much of an economic affect. What may have more of a affect is the New Jobless Claims which is set to be released on Thursday.
Europe's debt crisis is still impacting the U.S. economy, making U.S. bonds a safer bet for investors which has helped keep interest rates low. Homes.org will be keeping an eye on the outcome of the European Central Bank's meeting this week where they are expected to address whether Germany will be willing to increase support for struggling Eurozone countries.
Homes.org is predicting that economic decisions in Europe will have the most impact on interest rates here in the U.S. Interest rates are likely to rise slightly again next week if the ECB is able to keep the momentum moving forward and get Europe's debt crisis under control. However, word is that the Fed is looking to buy more mortgage backed securities to ensure that mortgage rates remain low.
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.