The personal financial situation of consumers remained dreary.
(PRWEB) February 11, 2012
The latest Homes.org weekly mortgage rate report found that interest rates rose slightly last week as was forecast. The increase was just two basis points which is a far smaller swing than the 12 point drop in the week before. It was last week's better than expected Jobless Claims report and Jobs Report which led to increased investor confidence, less bond buying and the slight bump up in interest rates.
Current mortgage interest rates are:
4.14% - average rate for a 30-year fixed rate mortgage
3.36% - average rate for a 15-year fixed rate mortgage
This week there were far fewer economic reports impacting interest rates. The few that did include:
- Thursday - Initial Jobless Claims for the week of February 4, 2012
- Friday - University of Michigan Consumer Sentiment Report
Due to the fact that consumer spending accounts for the majority of the U.S. economy this report's finding that consumer sentiment fell farther than expected, despite optimism about the jobs outlook. The consumer sentiment fell from 75 in January to 72.5 in early February mostly due to decline in incomes. Consumer Sentiment survey director Richard Curtin said, "the personal financial situation of consumers remained dreary." This somewhat sharp drop is sure to cause investors to act with a little more caution.
Other than the Consumer Sentiment Report, the other big factor affecting interest rates this week and in the weeks to come is Europe's debt crisis. Italy's new Prime Minister has announced a plan and steps towards moving the country to stabilization, however Greece is still battling over how to handle significant debt issues which is causing disruption in the region as a whole.
Homes.org is forecasting that the Consumer Sentiment report will possibly bring some investors back to bond buying and mortgage rates will remain steady this week.
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.