consumer spending increased month over month, but the loss in benefits may now put a dent in next month’s report since families use the assistance to spend on many staple goods.
Chicago, IL (PRWEB) December 28, 2013
Peoples Home Equity closely follows labor data in the United States as the lender understands its importance relating to mortgage rates, applications, and Fed policy.
Today, December 28th, 1.3 million Americans lost their unemployment benefits due to the expiration of their term. According to Peoples Home Equity, the news comes as a disappointment, and may nullify gains seen over a constructive week. On Monday, December 23rd, the market learned that consumer spending increased month over month, but the loss in benefits may now put a dent in next month’s report since families use the assistance to spend on many staple goods. Peoples Home Equity is especially disappointed in seeing announcement since the initial jobless claims reported a whopping 11% drop on Thursday for the week ending on December 20th.
Despite the hardships the loss of benefits will bring on for some Americans, others, specifically homebuyers should conclude that the news may stall the Federal Reserve from further tapering its asset repurchase program (QE3). A further stalling of QE3 would mean that interest rates may take a breather instead of moving higher in the coming months of 2014. Thus, Peoples Home Equity thinks prospective home buyers should take this opportunity to apply for a home loan now before mortgage rates continue higher on any possible positive employment news.
According to MortgageNewsDaily.com, 30-year fixed mortgage rates have already increased 4% from 4.47% in November 27th to 4.65% on December 27th. The overall trend in rates has been positive over the past year and the lender warns pending mortgage applicants waiting for a better rate are at risk. In the current environment, the market is looking for any excuse to push rates higher since they were subdued for an extended period of time due to the Fed’s policy of quantitative easing. The lender encourages individuals to apply for a home loan now before it becomes too expensive!
Peoples Home Equity hopes everyone is enjoying the holiday season. Should one be in need of assistance with applying for a home loan please feel free to contact a PHE loan officer at: (855)-897-0300