(PRWEB) March 10, 2012
The forecast from last week's Homes.org mortgage report was almost dead on when it was predicted that mortgage rate movement wasn't likely to be more than 5 basis points. Home buyers and refinancers are enjoying seriously low rates that only moved up 1 basis point on 30-year fixed mortgages and went down 1 basis point for 15-year fixed mortgages.
Current interest rates are:
- 4.11% - average rate for a 30-year fixed rate mortgage
- 3.34% - average rate for a 15-year fixed rate mortgage
Mixed economic and housing reports from last week caused there to be nearly no change in mortgage interest rates. Though overall things seem to be improving, caution is being taken to keep the economy and real estate markets moving in that general direction. Being able to get a low interest rate is one of the most appealing factors to today's buyers so there's no rush to start moving the needle upward.
This week is there are few economic reports that will have a direct effect on mortgage interest rates. However, the most significant happening this week include:
- HARP 2.0 Announcements
- Thursday - Greek Bail Out Bond Swap
- Friday - February Jobs Report
A few weeks ago the government announced that the HARP program would be underway soon, giving many homeowners the opportunity to refinance for lower rates and monthly payments. Also just announced is that HARP 2.0 will go into effect March 16. HARP 2.0 builds on the 2009 program but with a few significant changes, including removing the cap that limited refinance loans to no more than 125% of the home's value.
Thursday the first big step in the bailout of Greece was underway. As a condition of the bailout, and for the country to avoid default, Greece's creditors had to agree to swap old bonds for new ones at a lower value and interest rate. All in all investors are set to lose 74% of the value of their investment. Despite the loss, everything was finalized by Friday and the European economy avoided a potential disaster.
On the other side of the Atlantic things are looking up for America's economy. The February Jobs report was released on Friday and showed that jobs market continued to improve adding 227,000 jobs. While that number is slightly lower than last month, it's higher than what economists had expected. The unemployment rate remained at 8.3% for the second month in a row.
Homes.org is forecasting that mortgage rates will likely move sideways or drop a basis point or two next week. Investors are still going to be very cautious about Europe's economy and at the moment the U.S. appears to be a much safer bet. However, even though the economy's improving the real estate market still has a way to go and low mortgage interest rates helps keep the momentum going.
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.