(PRWEB) February 18, 2012
The Homes.org weekly mortgage rate report shows that interest rates fell this week, which wasn't what many analysts were expecting. The decrease of four basis points brings mortgage rates down to new record lows. Traditionally, when the economy improves, which this week's economic reports continue to suggest, interest rates will rise. But the Fed's actions to keep base rates at near zero and uncertainty in Greece, which is affecting the Eurozone's economy, are helping to suppress rising mortgage interest rates.
Current interest rates are:
4.10% - average rate for a 30-year fixed rate mortgage
3.35% - average rate for a 15-year fixed rate mortgage
This week there are a number of economic reports coming out that may have an effect on interest rates. The reports include:
- Tuesday - January Retail Sales report
- Thursday - Producer Price Index
- Thursday - Consumer Price Index
- Thursday - Jobless Claims report
- Thursday - New Housing Starts report and the Jobs report
- Friday - Consumer Sentiment report for the first week of February
The economic reports started off well for the U.S. economy this week with the January Retail Sales report showing a gain of 0.4%. Auto sales fell but spending was up in other areas including home and garden supplies. The Producer Price Index also showed very modest improvements going up by only .01%.
The bigger economic news was the unexpected drop in jobless benefit claims last week which was at its lowest level in four years. There were 13,000 less claims, that's below even the lowest economist expectations and further suggests that the jobs situation is improving in the U.S.
The other report that will have the biggest impact on the housing market is the Housing Starts report. The report showed a 1.5% increase in housing starts in the month of January. Building permits were also up from the previous period.
Homes.org is forecasting that given the better than expected economic reports this week and the already record low mortgage interest rates, we're likely to see a slight increase next 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.