Just 8 years ago, new homes sales were over 1.2 million.
Chicago, IL (PRWEB) December 22, 2013
Peoples Home Equity is waiting for Tuesday’s new homes sales report. The lender has lowered its expectations since other influential data has been negative. Regardless of the upcoming new home sales report, the lender reminds prospective home buyers to pay attention to Fed policy and its dramatic influence on mortgage rates regardless of new housing reports.
New home sales will be reported on Tuesday, December 24th. This metric is very important as it shows how many new homes are being sold. According to TradingEconomics.com, a new home sale occurs “with the signing of a sales contract or the acceptance of a deposit. The house can be in any stage of construction: not yet started, under construction, or already completed.” New home sales surged 25.4% from September to October, now the consensus is for Tuesday’s report is a slight month over month rise of 0.22%. However, Peoples Home Equity has lowered its own expectations of the existing home sales report considering that weekly mortgage applications as well as existing home sales have shown continued downtrends throughout November. The lender will be content with a number at or above 429,000 new home sales. Just 8 years ago, new homes sales were over 1.2 million. While these amounts of high sales will not reoccur for a long time, Peoples Home Equity does think it’s highly likely that new home sales will reach new 5 year highs in 2014.
Considering that the housing market is in its seasonally weak, winter period, home buyers should apply for a mortgage now. Prospective home buyers should know that while existing homes sales, weekly mortgage applications, and initial jobless claims have shown lenders that housing demand has waned into December, a recent announcement by the Federal Reserve regarding QE3 is prompting the market to hold interest rates near their annual highs. The Federal Reserve announced on Wednesday, December 18th that it would “modestly reduce the pace of its asset purchases” from $85 billion a month to $75 billion. This program has been successfully keeping interest rates low for the past 5 years. However, the Federal Reserve no longer sees its expensive policy as necessary anymore to encourage borrowing since the U.S. economy has recovered and unemployment is declining. The Fed is expecting to end its policy soon and once this occurs, mortgage rates are expected to increase dramatically in a short period of time despite any weakness in housing demand. Thus, Peoples Home Equity strongly encourages home buyers to apply for a home loan now before it becomes too expensive!
Please contact Peoples Home Equity loan officer today for HARP loan details at: (855)-897-0300