weekly mortgage applications have been negative for 14 of the past 24 weeks.
Chicago, IL (PRWEB) January 31, 2014
So far this week People Home Equity has seen some favorable housing news as well as negative economic release. On the bright side the US economy grew by a very healthy 3.2% in the 4th quarter of 2013. The bad news is that unfortunately, weekly mortgage applications declined, initial jobless claims rose for last week, and pending home sales greatly underperformed market expectations for December.
As posted on Thursday, January 30th by the U.S. Bureau of Economic Analysis the American economy grew by an annualized pace of 3.2% during the 4th quarter of 2013. There have now been 11 consecutive positive quarters of growth and since the last decline in 2011. Peoples Home Equity found the data as re-confirming that the economy is growing which is being reflected in the housing market with home prices and housing starts.
Despite the elevating GDP news, negative economic releases have been numerous. The weekly mortgage applications survey report which was released by the Mortgage Bankers Association on Wednesday, January 29th posted a decline of -0.2%. Given the scale of the decline after 2 surprisingly positive weeks of applications, Peoples Home Equity was willing to accept a small decrease. Readers should also know that weekly mortgage applications have been negative for 14 of the past 24 weeks.
Initial jobless claims rose for the second consecutive time ending the week of January 24th. Peoples Home Equity does not expect the rise to continue much longer. The lender sees the labor market as strengthen inferring that high spike in jobless claims should not be expected.
Lastly, and most damaging, was the pending home sales report released by the National Association of Realtors on January 30th. Pending home sales declined -8.8% in December which market the 4th consecutive decline in sales. Although pending home sales were declining for the 3 months before December, the percentage changes were relatively small averaging at -1.46%. In the past 24 months.
Looking forward, Peoples Home Equity is cautiously optimistic, the bank believes its employees do a great time.