Austin, TX (PRWEB) January 20, 2012
With the real estate industry expected to show some slight improvements this week, now is no time for mortgage rate increases. The Fed knows this and is doing their part to squelch upward movement by buying mortgage bonds. When bond buying is strong interest rates remain low and the Fed's actions are keeping the traders' interests up. This and Europe's economic state is the primary reason for mortgage rates staying steady since last week.
Current interest rates are:
4.18% - average rate for a 30-year fixed rate mortgage
3.38% - average rate for a 15-year fixed rate mortgage
Most of the economic activity and reports that affect mortgage rates in the U.S. is happening late in the week, partially due to the week opening with a holiday. The Producer and Consumer Price Index inflation reports came out Wednesday and Thursday showing that inflation hasn't occurred at the consumer level and dropped by .1% for wholesale prices. This is good news in the mortgage interest industry since increase in inflation often equates to higher rates.
Employment and spending numbers were also optimistic with spending and manufacturing up and unemployment claims down this week to the lowest level since April 2008. These trends are keep stocks from dropping and signaling signs of economic recovery in the U.S.
This week housing reports are also released which directly show how the real estate industry is fairing. The Housing Starts report released Thursday showed a 4.1% drop in December, however builder sentiment was stronger in January. They remain optimistic because single-family home starts did increase by 4.4%. The Existing Home Sales report due out today is predicted to show continued signs of recovery.
Homes.org is forecasting that with the Fed keeping mortgage bond buying in action, the EuroZone still in economic uncertainty and desire to keep the U.S. real estate market moving in the right direction, mortgage interest rates are likely to move sideways and remain just as low at the start of 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.