Chicago, IL (PRWEB) January 17, 2014
Peoples Home Equity was content to see today’s December housing starts reading by the U.S. Census Bureau. Housing starts posted at the 3rd highest number for 2013. Building permits also reported in line with its annual uptrend. Catching up with yesterday’s market data NAHB housing market index posted a slight decline for December but remained just -3.44% under its annual highs.
Today, January 17th, housing starts posted at 990,00 which was 9.8% below that of November at 1,107,000. Some may see this decline as negative but given that housing starts increased for 3 consecutive months including a sharp 23.1% rise in November it was acceptable to see some consolidation in December. Housing starts posted the 3rd highest reading since 2008 which was regarded as very positive by Peoples Home Equity.
Building permits were also reported today, yet the data was not as strong. Permits declined the the 2nd consecutive month and posted at 986,000 which is still strong compared to the past 5 years, but relative to housing starts, was is as strong of a headline data point.
Yesterday, January, 16th the National Association of Home Builders (NAHB) announced their monthly housing market index value at 56. While the index declined it was only -1.75% from November’s number of 57.
Peoples Home Equity sees the housing market as continuing to post constructive to positive economic data. If this continues home prices will continue higher and unfortunately mortgage rates are expected to follow due to changing Federal Reserve policy. Peoples Home Equity reminds readers than the Federal Reserve is planning to further taper its quantitative easing program and also raise the Federal Funds rate, both actions will likely lead to an immediately raising of mortgage rates by lenders. To avoid this risk prospective home buyers should apply for a home loan now before it becomes less affordable.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.