Applications reached a 5 year low for the week ending December 24, the numbers had not been so low since November 2008. Peoples Home Equity expects applications to rise further on continued increases in employment data.
Chicago, IL (PRWEB) January 08, 2014
Wednesday, January 8th was quite event for the mortgage/housing market. First, the Mortgage Bankers Association reported better than expected weekly mortgage applications. Second, Automatic Data Processing, Inc (ADP) reported a better than expected employment change report. Finally, the Federal Reserve minutes were released today and the market learned the Fed is becoming increasingly interested in inflation besides unemployment. Peoples Home Equity viewed today’s news as very eventful and expects mortgage rates to move outside their narrow range soon. Did not budge, the lender expects Friday’s unemployment report probably move rates.
Weekly mortgage applications posted a 2.6% rise for the week ending January 3rd. This figure was much higher than the consensus of -6.3%. The news may be a break in the downtrend applications have seen over the past few weeks. Applications reached a 5 year low for the week ending December 24, the numbers had not been so low since November 2008. Peoples Home Equity expects applications to rise further on continued increases in employment data.
Speaking of employment, ADP posted 238,000 new jobs for December; this was 19% higher than what economists were expecting at just 200,000. The employment change was also number than November, marking the 4th consecutive month of employment rising.
As employment numbers continue to change for the better, the Federal Reserve is beginning to pay more attention to interest rates. In addition the question is no longer when will the Federal Reserve taper quantitative easing, but by how much in what period of time. Interest rates have been subdued for an extended period of time, which the FOMC minute release made clear from the Fed December 18th meeting that the rate situation is being focused on closely.
These economic announcements were very important and influential for the housing market. If it were not for the all-important unemployment report on Friday, then Peoples Home Equity would expect to see a larger move in mortgage rates today. The lender warns prospective home buyers to at least apply for a mortgage now, before rates shift higher on more positive economic data!Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300