Initial Jobless Claims Surge 22% Week-Over-Week

Peoples Home Equity comments on Thursday's initial jobless claims report.

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To protect against rising interest rates, Peoples Home Equity strongly encourages all home buyers to apply for a home loan now before it’s too expensive!

Chicago, IL (PRWEB) December 12, 2013

Peoples Home Equity was disappointed to see initial jobless claims figures ending the week of December 6th. The report, released by the Department of Labor on Thursday, December 12th showed “an increase of 68,000 from the previous week's revised figure of 300,000. ” While Thursday’s claims may seem very surprising in a negative way, individuals should look past the report as both Federal Reserve rhetoric and mortgage rates are pointing towards an improving economy.    

Peoples Home Equity was optimistic leading into the December 12th report as stated in its Tuesday, December 10th news release, titled “Initial Jobless Claims To Be Important Data Point Released on Thursday.” The release outlined the realization that initial claims numbers were near a 5 year low declining for 7 of the past 9 weeks before Thursdays numbers, thus a rebound was to be expected, as reported. While a large increase in claims occurred on Thursday Peoples Home Equity expects the numbers to resume their downtrend. If past performance is an indicator of future behavior than the lender may be correct. A 2-year chart shows that every time there is a jump in data jobless claims the progress weeks tend to be down. Of the past 22 weeks, 14 job claims reports have been reporting as lower than the previous week. Further, despite Thursday’s large rise in initial claims, the figure remains below the 10 year average of closer to 395,000.

Based on an expected continued decline of jobless claims, individuals should prepare for an improving economy. As the economy improves the Federal Reserve will move toward tapering is asset repurchase program which will cause interest rates, and thus mortgage rates, to move higher. Peoples Home Equity further reminds readers that weekly mortgage applications broke a 6 week decline yesterday which has caused mortgage rates to increase due to renewed housing demand. According to Mortgage News Daily, the rate on an average 30-year fixed loan increased 0.03% to 4.57% on Thursday. To protect against rising interest rates, Peoples Home Equity strongly
encourages all home buyers to apply for a home loan now before it’s too expensive!

Please contact a Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300