Prospective home buyers should not just wait on the sidelines hoping either mortgage rates or property values to decline again for a buying opportunity.
Chicago, IL (PRWEB) January 15, 2014
Weekly mortgage applications rose by a spectacular 11.9% for the week ending January 11th. Peoples Home Equity was very delighted with the data as it was the most positive in months!
Weekly mortgage applications, reported by the Mortgage Bankers Association today, January 15th, made a dramatic rise today in what many lenders, such as Peoples Home Equity, were not expecting to see. The news was very positive for the housing market and shows that the market is positively reacting to the declining initial jobless claims and unemployment data we have seen over the past month.
30-year fixed rate mortgages reacted by increasing 0.03 to closing at 4.53%, as shown on MortgageNewsDaily.com In general mortgage rates have been rising this week since a large decline was seen last Friday, January 10th. Peoples Home Equity expects both rates and home prices to continue higher as more positive market news, such as today’s weekly mortgage applications report, hits the headlines. Prospective home buyers should not just wait on the sidelines hoping either mortgage rates or property values to decline again for a buying opportunity. Instead individuals should recognize the reality of the market situation which is that mortgage rates are still below their long term historical average and national real estate prices are still trending at a discount versus peak levels in 2006. The lender encourages all prospective home buyers to at least apply for a home loan now due to the benefits it brings. First, the applicant learns how much credit they may be given, this helps revise their search for property listings. Second, when a home buyer makes a bid, the seller will take them more seriously due to the promise of funds from the bank. This is very important for buyers who are competing with investors that are willing to pay with full cash.
In the end, prospective home buyers should not look at obtaining a mortgage now as a misfortune to a year ago. Yes mortgage rates and home prices were lower a year ago, but they are currently in a strong trend higher. Trends can last a long time, and now is the best time to secure a mortgage before rates will probably increase further due to the Federal Reserve’s plan to further taper quantitative easing. Thus, apply now for a home loan before the housing environment gets less affordable.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300