(PRWEB) June 17, 2012
This week Homes.org had forecast that mortgage interest rates would go up a basis point or two, which is partially what happened. In their new report Homes.org discusses the factors that led to the latest mortgage interest rates as well as this week’s economic events that could have an effect on rates in the coming days. This week the 30-year fixed rate mortgage fell 1 basis point while the 15-year fixed rate increased 1 basis point.
Current interest rates are:
3.91% - average rate for a 30-year fixed rate mortgage
3.17% - average rate for a 15-year fixed rate mortgage
After a promising first quarter, it’s clear from recent economic reports that the economic recovery has slowed in the U.S. However, Europe’s struggling economy seems to be having a greater effect on mortgage rates, especially now that Spain is also going to require a bailout. Despite the Fed’s optimistic news last week borrowing rates remained at record lows.
This week a number of influential economic reports were released. Below is an overview of this week's most important economic activity.
Retail sales are an important figure given that consumer spending drives the U.S. economy. Experts expected retail sales to drop by .2%, which is exactly what happened. The drop was largely due to the decrease in gas prices that steadily declined throughout the month. Any decline in retail sales should help keep rates low.
Lower gas prices also contributed to the significant drop in the Producer Price Index and a slight decrease in the Consumer Price Index. The PPI was down 1%, the biggest drop in nearly 3 years. The Consumer Price Index fell .2%. Declines in the PPI and CPI mean that borrowing rates likely won’t rise.
Homes.org is predicting there will be a slight decrease in mortgage interest rates next week now that inflation is not a concern.
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.