(PRWEB) April 14, 2012
Anyone wanting to buy a home or refinance will benefit from the lackluster economic reports that have recently been released. As noted in the Homes.org mortgage report this week there was a dramatic drop in mortgage interest rates due to signs that the U.S. economy may be stalling. The 30-year fixed rate mortgage fell 14 basis points and the 15-year fixed rate mortgage dropped by 10 basis points.
4.11% - average rate for a 30-year fixed rate mortgage
3.32% - average rate for a 15-year fixed rate mortgage
Last week there were very few economic reports and no big news that caused any real movement in mortgage rates, although the lower than expected job growth did have a slight impact. This week has been quite different. Below are details on this week's roundup of economic reports.
- Wednesday: Fed Beige Book released
- Thursday: Producer Price Index
- Friday: Consumer Price Index
The Fed's Beige Book survey, which influences the Fed decision making, gives people a look at the overall health of the U.S. economy by region. The survey found that the economy experienced steady growth in February and March. Job growth did slow in March, however this appears to be temporary.
The Producer Price Index and Consumer Price Index indicate inflation which has a direct effect on mortgage rates. The Producer Price Index remained unchanged in March. Luckily, the Consumer Price Index rose 0.3% which is slightly lower than last month. When volatile costs of energy and food are excluded it drops to 0.2%. This is a good sign that inflation won't cause mortgage rates to go up.
Also a topic of interest this week is the increased number of homes going into foreclosure. The rise in the number of foreclosed homes comes as 5 major mortgage lenders agreed to pay a $26 billion dollar settlement after it was discovered that they were signing off on foreclosures that weren't justified. Now that the settlement has been reached these banks are back to foreclosing on homes.
Homes.org is forecasting that due to the already steep drop, mortgage interest rates are likely to move sideways next week with little to no change.
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.