Weekly Mortgage Applications & Federal Reserve Minutes

Peoples Home Equity awaits the release of the Mortgage Bankers Association's weekly mortgage applications survey report this morning. In addition, the lender is waiting to hear the any announcements from the Federal Reserve minutes meeting later this afternoon.

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Mortgage rates are expected to rise dramatically on further tapering of QE3 and if this after effect does not of occur, it surely will when the Fed decides to raise interest rates directly.

Chicago, IL (PRWEB) January 29, 2014

Peoples Home Equity is waiting to see if mortgage applications can surprise the market once again with a positive report this morning. After the release, all eyes will shift onto the Federal Reserve minutes meeting this afternoon. The minutes meeting will be very important as there is a chance we will hear of another tapering announcement of quantitative easing (QE3).

As shown on TradingEconomics.com calender, morning the market expect the Mortgage Bankers Association (MBA) weekly mortgage applications survey report. The report has been positive for the past 3 weeks after a dismal period of a few months declining overall. Weekly mortgage applications are seen as a leading indicator for home sales, just as initial jobless claims are seen as a forerunner for the unemployment rate. Peoples Home Equity is cautiously optimistic about tomorrow’s report. The lenders recognizes that applications have risen for 3 consecutive weeks but things there could be more room grow as the housing market feels the positive aftereffect of the nation’s declining unemployment rate.

After the MBA announcement, investors and spectators alike, especially prospective home buyers, will be waiting to hear what the Federal Reserve has to say in its FOMC minutes meeting. The question on everyone’s mind is, will the Federal Reserve further taper QE3? On the one hand, both the housing market and the labor market have recovered a great deal. Unemployment is nor 6.7% which is very close to the Feds goal of 6.5%. The housing market has shown steady price gains since 2009, which the S&P/Case-Shiller home price index confirmed yesterday, January 28th, with yet another month gains of 0.1% seen in November 2013.

However, on the other hand, home sales of been week for the past couple months and the price gains seen in the housing market are starting to wane. A further tapering of QE3 may only stall the recovery to the detriment of the labor and housing markets.

If the Federal Reserve does announce to once again tapering its QE3 then it cannot be said that People Home Equity did not send a warning beforehand. Peoples Home Equity has been encouraging prospective mortgage applications relentlessly to apply for a home loan now prior to any further risk of rates increasing. Mortgage rates are expected to rise dramatically on further tapering of QE3 and if this after effect does not of occur, it surely will when the Fed decides to raise interest rates directly.    

Apply now for a purchase loan now before purchasing a home becomes less affordable due to both rising real estate prices and mortgage rates.

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