With the EuroZone still in economic uncertainty, and the U.S. posting strong annual sales figures investors will continue to see the later as the safer bet.
Austin, TX (PRWEB) January 13, 2012
The Homes.org weekly mortgage rate report finds that last week was a good week for mortgage interest rates and the trend is likely to continue. Despite encouraging signs that the U.S. economy is on its way to recovery, rates started the week out 3 basis points lower. This is due to investor interest in U.S. Treasuries and bonds which are still considered a safer bet compared to European investments.
Current interest rates are:
4.18% - average rate for a 30-year fixed rate mortgage
3.38% - average rate for a 15-year fixed rate mortgage
All in all the economy was looking up last week - the December Employment Report showed a drop in unemployment to 8.5% and the Commerce Department noted that factory orders increased by 1.8% in November. However, the recovery has been slow and the real estate industry is still trying to find its footing.
This week two reports in connection with consumer spending will likely have an effect on interest rates come Monday. The Retail Sales Report, which tracks monthly sales of U.S. retailers, measures consumer spending which accounts for approximately 70% of the U.S. economy. The December report found that while spending wasn't high initially expected there was a .1% gain after seasonal adjustments. While that wasn't a huge gain it did add to the overall 2011 sales numbers which showed an 8% increase over last year making it the largest annual percentage increase in 12 years.
Friday the University of Michigan will release its Index of Consumer Sentiment. The report will indicate consumer's willingness to spend which has a significant impact on the markets. If the report shows any dramatic changes over the last it will likely cause slight movement in mortgage rates.
Homes.org is forecasting that with the EuroZone still in economic uncertainty, and the U.S. posting strong annual sales figures investors will continue to see the later as the safer bet. Given the December sales report, the Friday sentiment report will likely show a slight increase in consumer confidence and willingness to spend. All of which indicates there won't be much movement in mortgage interest rates 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.