Chicago, IL (PRWEB) December 08, 2013
Peoples Home Equity has been informing its prospective home loan applicants that the rising trend in mortgage rates could soon go parabolic. Positive economic data being reported all week has serious near term implications for Fed policy. Thus, Peoples Home Equity finds it essential for first time home buyers to get approved for a home loan now.
According to a mortgage rate chart from MortgageNewsDaily.com, Freddie Mac 30-year fixed mortgage rates have increased 1.05% from December 2012 to November 2013. At its current growth rate, mortgage rates would reach 5% by next November which means thousands of dollars in extra interest payments. The reality of this playing out is real and probably very soon. Mortgage rates were at 5% in January 2009, a time when the Dow Jones Industrial Average was trending -35% below its October 2007 peak. Now the Dow Jones Industrial Average is trending at all-time highs while mortgage rates continue to float below 5% due to the Federal Reverse carrying out its economic stimulus package (QE3).
Recently however, the Federal Reserve has mentioned that it may begin tapering its economic stimulus package in March 2014, according to CNBC.com. The data point that the Federal Reserve focused on to determining when to begin tapering its stimulus is the unemployment rate. The Fed wants to reach a goal of 6.5% unemployment which is fast approaching as the rate just declined from 7.3% in October to 7.0% in November. Once the Fed completely stops its stimulus program then mortgages rates are expected go parabolic on line charts as they have been kept artificially low for a prolonged period of time.
For first time home buyers who are shopping for a home, Peoples Home Equity encourages them to make sure they are approved for a home loan. Now is the time to find an affordable home loan before it's too late.
Please contact a Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300