Mortgage applicants should take advantage of the current inflation environment since the historical average from1914 is 3.34%.
Chicago, IL (PRWEB) December 17, 2013
Inflation reportedly rose 0.2% in November according to today's report by the U.S. Bureau of Labor Statistics. Peoples Home Equity found the rise small given the increase was from 1% to just 1.2%. However, the lender emphasizes that the increase is telling of the news times ahead, and prospective mortgage applicants should take notice.
The inflation rate
Peoples Home Equity anticipated an inflation rise as outlined in their press release yesterday, December 16th, titled “Federal Reserve Policy And The Inflation Rate Come Into Focus.” The lender was saying that it seemed “unreasonable for inflation to go lower.” Mortgage applicants should take advantage of the current inflation environment since the historical average from1914 is 3.34%. Once inflation rates continue higher mortgages rate will be directly affected to the detriment of home buyers. Despite inflation being an important data point for Tuesday, markets are now focusing on any statement that may come from the Federal Open Market Committee (FOMC).
The housing and lending market, as well as the entire World, are waiting for what the FOMC will decide regarding its quantitative easing program known as QE3. Chairman Ben S. Bernanke, with his soon to be successor, Janet Yellen, as well as other important figures on the Feds board of governors will be discussing how and when to taper its successful polic. The program has been quite popular due to its ability to keep interest rates in check, and spark growth. During the history of QE1, QE2, and now QE3, individuals have been able to borrow money at very low rates and both real estate/stock markets have flourished under the polices.
Peoples Home Equity knows that once the Fed ends its quantitative easing program, interest rates will rise dramatically in a short period of time. The lender believes home buyers cannot afford to miss this opportunity to refinance or obtain a purchase loan because interest rates are on the verge of surging due to the Fed soon tapering its QE3 program in 2014.
If thinking about applying for a home loan, please do not hesitate to contact a Peoples Home Equity loan officer today to discuss all their finance options: (855)-897-0300