Chicago, IL (PRWEB) February 06, 2014
Peoples Home Equity was excited to see initial jobless claims post a decline of -5.6% this morning, January 6th. The lender was content to see weekly mortgage applications resume their rise. Lastly, it was reassuring to hear that the European Central Bank decided to leave its rates alone. All the good news bodes well for the U.S. housing market and prospective home buyers.
As reported by the U.S. Department of Labor on January 6th, Initial jobless claims declined from 351,000 from the week ending on January 24th to 331,000 for the week ending on January 31st. This drop was more than analysts were expecting. The consensus estimate was a reading of 335,000.
The Mortgage Bankers Association show that weekly mortgage applications resumed their rise by increasing 0.4% on Wednesday. This is good news given that applications took a pause the week prior with a decline of -0.2%. With unemployment continuing to fall, Peoples Home Equity expects to see more positive reading coming from weekly mortgage applications. Of the past 14 readings only 5 have been positive which shows a negative picture. However, of the past 4 mortgage application readings, 3 have been positive indicating a strong chance that we are going to see the upward trend continue.
According to TradingEconomics.com today January 6th, the European Central Bank (ECB) decided to leave its rates alone today for its 6th straight meeting. This action was very positive for prospective home buyers in the U.S. as there has been a historical correlation between European rates and U.S. rates. As markets have become more interconnected it is possible for rates in Europe to affect a mortgage rate in the USA. Fortunately, the ECB decided to leave its rates alone at a minimal 0.25%. Had the ECB raised its bench rate it would have put further pressure on the Federal Reserve to raise its rates which in turn would cause an automatic shift up in mortgage rates.
Despite negative headlines relating to equities, People Home Equity hopes its readers will focus on opportunity of lower interest/mortgage rates.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.