Of the past 9 initial jobless claim reports since the start of October, 7 have posted declines week over week declines.
Knoxville, TN (PRWEB) December 10, 2013
Peoples Home Equity is optimistic about the upcoming initial jobless claim number that will be reported on Thursday, December 12th by the U.S. Labor Department. While a continued decline is preferred the lender is realistic in knowing that initial claims have nearly reached their historic trough.
If one looks at a 13 year chart for initial claims, courtesy of TradingEconomics.com, one can easily conclude that we are experiencing the lowest numbers since 2007. Of the past 9 initial jobless claim reports since the start of October, 7 have posted declines week over week declines. Peoples Home Equity thinks the trend will continue and a record low in jobless claims will be posted.
However, Peoples Home Equity is also realistic in knowing that jobless claims haven’t gone below 250,000 for the past 20 years. On the upside jobless claims have shown record highs above 650,000 in the first half of 2009 due to the financial crisis.
Peoples Home Equity sees the jobs market growing and it’s only a question of how long initial claims can remain at numbers below 300,000 a week until unemployment reaches a trough. The government is certainly trying to keep initial claims down in the 275,000-325,000 range so that it can reach its 6.5% unemployment goal before tapering and eventually ending its stimulus program. Peoples Home Equity reminds readers that the jobs numbers are much interconnected with the future of mortgage rates, and hence it is a serious data point to watch for on Thursday morning. As initial jobless claims continue trending near annual lows, unemployment will eventually touch 6.5%. When the Federal Reserve stops its stimulus program, which was partially create to artificially hold interest rates down, then mortgage rates will shoot up. A rise in mortgage rates is detrimental for any home buyer, thus Peoples Home Equity encourages Americans to apply and get approved for a home loan now before it’s too late!
Please contact Peoples Home Equity loan officer today for affordable mortgage options: (855)-897-0300