(PRWEB) June 09, 2012
Last week Homes.org forecast that mortgage interest rates would like hold steady or drop a few basis points which is exactly what happened this week. In their latest report Homes.org discusses what led to the decrease in mortgage interest rates and economic events this week that could have an effect on rate in the coming weeks. This week the 30-year fixed rate mortgage dropped 2 basis points and the 15-year fixed rate went up 1 basis point.
Current mortgage interest rates are:
3.92% - average rate for a 30-year fixed rate mortgage
3.16% - average rate for a 15-year fixed rate mortgage
As Homes.org reported the struggling European economy and lower than expected jobs numbers last week kept interest rates at record lows. Drops in the stock market also contributed to the decline in rates. This week only one economic report was released, however Fed activities were closely watched by those in the mortgage industry.
Below is an overview of this week's most important economic activity.
- Monday: April Factory Orders
- Wednesday: Fed Beige Book Release
- Thursday: Fed Chairman Bernanke Congressional Testimony
The week started out with disappointing economic news when the April Factory Orders report showed a 0.6% drop. This was the second consecutive month of decline.
Despite this set back the Fed Beige Book that was released this week pointed towards moderate economic growth in the U.S. The Fed Beige Book is made up of reports from 12 Federal Reserve districts throughout the country and provides an in-depth look at economic conditions nationwide. Many experts consider the Beige Book to be one of the best indicators of how the economy is fairing and what the economic conditions are likely to be in the months to come.
Job seekers will be encouraged to hear that despite the poor Jobs report last week the Fed said that, “hiring was steady or showed a modest increase. Economic outlooks remain positive, but contacts were slightly more guarded in their optimism.”
Homes.org mortgage researchers predict there will be a slight increase in mortgage interest rates next week now that the dust has settled from the disappointing jobs numbers and the stock market has recovered this 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.