Declining Mortgage Rates Signals Opportunity Before Spring Demand Arrives

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Peoples Home Equity encourages readers to capitalized on the mortgage rates recently moving lower.

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Over the past 43 years, mortgage rates have been relatively lower during the months of December, January, and February.

Mortgage rates have been on a steady downtrend over the past 30 days. Peoples Home Equity sees the decline as sending a strong message to the market that now is the time to apply for a home loan.

According to, 30 year fixed mortgage rates have descended from 4.66% on December 26th, to 4.43% on January 24th. The recent market sell off grew ever stronger throughout the week ending badly on Friday for stock market indices. The recent market volatility has caused stocks and interest rates to fall, to the detriment of 401k accounts, but to the benefit of prospective mortgage applicants.

Peoples Home Equity believes Americans thinking about purchasing a property need to apply for a home loan now based on this monthly rate decline. The stress of applying for a home loan now is not stated without merit. The lender released a report on November 15th titled, “43 Years of Data Shows Historical Bias in Mortgages Rates”, which emphasized that over the past 43 years, mortgage rates have been relatively lower during the months of December, January, and February. Given the strength of the data presented individuals were encouraged to apply for a mortgage soon during the winter months which we are living through now.

Soon, the spring months will arrive, bringing a new wave of housing demand. Couple this reoccurring annual pattern with the fact that mortgage applications have already been on the rise for the past 3 weeks and one may conclude that mortgage rates will not remain subdued for long. Lastly, and perhaps the strongest argument to be made on why rates will rise soon is that the Federal Reserve plans to further taper its quantitative easing program again, and intentionally raise the Federal Funds rate. Since markets have recovered and reached new all-time highs the Federal Reserve wants to raise interest rates to avoid cheap borrowing to lead to another unnecessary bubble from forming. The Federal Reserve has previously stated that it plans on raising interest rates when unemployment reaches 6.5%, it is currently at 6.7%.

Peoples Home Equity encourages Americans to apply now for a mortgage before buying a home becomes less affordable.

Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.

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Giorgio U Ferrero
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