Chicago, IL (PRWEB) January 01, 2014
In the recognition of markets being closed today due to the January 1st holiday, Peoples Home Equity looks to tomorrow, for both initial jobless claims and ISM manufacturing data to be released.
Initial jobless claims, which are reported by the US Labor Department, will be an important report to be released tomorrow morning. People Home Equity always keeps a close eye on jobless claims as they strongly influence Federal Reserve policy which subsequently affects mortgage rates. Jobless claims were reported as 338,000 on Thursday, December 23rd for the week ending on December 20th. This decline was the largest seen for the previous 23 weeks of reports. Tomorrow, January 2nd, Peoples Home Equity is hoping to see jobless claims at or below 338,000, showing a constructive trend decrease.
The ISM manufacturing index will be reported tomorrow by the Institute for Supply Management. This index is important because it gives economists, such as those in the Federal Reserve, an idea if the US economy is expanding or contracting. Recent reports have shown the index increasing in value for the past seven months. Peoples Home Equity does will not view a possible decline in tomorrow’s report as being negative as long as it the index remains close to its high of 56 or higher. The market consensus for this release is 57 which would be the 2nd highest announcement for the past 23 weeks and just -0.52% below the previous report for November.
Readers should expect decreasing jobless claims and high ISM manufacturing reports to influence the Federal Reserve to continue tapering its quantitative easing program (QE3). As the Fed continues to cut QE3 mortgage rates are expected to rise. The average 30-year fixed mortgage has already seen rates increase from 3.41% in January 2013 to 4.60% now, as shown on MortgageNewsDaily.com. This rise represents a 34.89% increase on a year-over-year basis. While rates have trended lower over the past 30 years the average remains high than where rates are currently. Peoples Home Equity encourages all prospective home buyers to apply now for a mortgage before it becomes too expensive!
Peoples Home Equity wishes everyone a very happy New Year’s Day. 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.