(PRWEB) July 14, 2012
The weekly Homes.org mortgage rate report outlines the most important economic news effecting interest rates over the last seven days. News last week of the stalling U.S. economy pushed rates downward even further to brand new record lows. This week both the 30-year fixed rate mortgages and the 15-year fixed rate mortgage rates dropped 8 basis points.
Current mortgage interest rates are:
3.79% - average rate for a 30-year fixed rate mortgage
3.05% - average rate for a 15-year fixed rate mortgage
Last week economic news continued to be disappointing with manufacturing indicators falling to a 3 year low and the jobs report found no change in the unemployment rate. With things remaining the same in Europe rates weren’t likely to go up, however the drop was farther than most analysts expected.
This week there were numerous economic reports released. Below is an overview of this week's most important economic activity.
- Wednesday: Treasury Auctions
- Thursday: Initial Jobless Claims
- Friday: Producer Price Index (PPI)
In the midst of mundane economic reports this week’s Initial Jobless Claims held some good news. New claims fell to 350,000, which is the lowest it’s been since March 2008. However, people should keep in mind that the weekly jobless claims can swing widely.
The Producer Price Index (PPI) is an indicator of inflation levels and inflation is one of the economic factors that affect interest rates the most. On Friday the PPI showed only a modest increase of only 0.1% in the core rate, meaning rates are safe from the influence of inflation for the time being.
One fast approaching event that’s affecting mortgage rates is the presidential election. With uncertainties of what 2013 will bring no matter who wins, investors are keeping their money in U.S. Treasury bonds and mortgage-backed securities. Pair that with the fact that the Fed is continuing its efforts to keep rates low through mortgage-backed bond buying, and its unlikely that rates will rise much this year.
Rates have been steadily declining since April 4 and the Homes.org mortgage team forecasts that they’ll likely stay the same or edge slightly lower in the coming weeks.
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.