On Wednesday, Jan’29th the rate on an average 30 fixed mortgage declined -0.09, and after a minuscule increase of 0.01 on Thursday, rates descended again on Friday by -0.07.
Chicago, IL (PRWEB) February 01, 2014
Interest rates moved dramatically this week to the benefit of prospective mortgage applicants. Peoples Home Equity sees the current environment as an opportunity for readers.
This week, mortgage rates moved “forcefully lower” as reported by Mortgage News Daily by the largest amount since Jan’10th. On Wednesday, Jan’29th, the rate on an average 30 fixed mortgage declined -0.09, and after a minuscule increase of 0.01 on Thursday, rates descended again on Friday by -0.07.
Negative global growth headlines have been influencing investors to fly to safety and buy up U.S. treasuries causing interest rates to drop. In addition, we have seen a slew of three negative housing reports: declining new home sales, existing home sales, and pending home sales. The accumulation of this news has added to the sharp drop in mortgage rates this week.
While the recent decline in mortgage rates may be detrimental for lenders such as Peoples Home Equity, it is very positive for prospective mortgage applicants. The move lower should be regarded as a positive omen just before the Fed plans on further taper its quantitative easing program, which has a high chance of forcing interest rates higher. If tapering does not lead to higher interest rates, then a Fed decision to directly raise its Federal funds rate will. It has been well known since December 2012 that the Fed plans to begin raising interest rates once unemployment reaches 6.5%. Currently, unemployment is at 6.7% thus mortgage applicants are pushing their luck by not applying for a home loan now.
Peoples Home Equity suggests readers not to push their luck and wait to apply for a home loan. Mortgage rates may be lower today, but expectations are for both higher rates and higher real estate prices in the months ahead.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300