(PRWEB) July 28, 2012
The new Homes.org weekly mortgage rate report analyzes the most important economic news effecting interest rates over the last seven days. Last week rates fell very slightly to new record lows, as the economic outlook remained unchanged. This week 30-year fixed rate and 15-year fixed rate mortgages dropped by 3 basis point.
Current mortgage interest rates are:
3.75% - average rate for a 30-year fixed rate mortgage
3.01% - average rate for a 15-year fixed rate mortgage
Little changed in the U.S. and European economies last week, which was reflected in mortgage interest rates that were relatively unchanged. Last week’s news and reports also held few surprises as was indicated in Fed Chairman Bernanke’s testimony to Congress.
Several important economic reports were released this week. Below is an overview of this week's most important economic activity.
- Wednesday: June New Home Sales report
- Thursday: June Durable Goods Orders
- Friday: 2nd Quarter GDP reading
The most influential report out this week is most certainly the Second Quarter GDP reading. The GDP is a gauge of the overall health of the economy and whether growth or retraction can be expected in the months to come. At a growth rate of 1.5% the GDP is better than analysts expected, however, it is down from 2% growth in the first quarter.
Durable Goods Orders, which is a measure of the how the manufacturing sector is preforming, were also higher than expected. Orders were up 1.6% from May and mainly driven by purchases of defense equipment and airplanes.
After making gains in April and May, new home sales declined in June by 8.4%. The silver lining is that despite the decline sales are still up 15.1% compared to the same time last year.
Though the GDP is up higher than expected, it is down compared to the first quarter. The European economy is no better off this week than it was last week. Given these two factors the Homes.org mortgage team is predicting that rates will either hold steady or possibly drop a point or two 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.