Chicago, IL (PRWEB) February 10, 2014
Peoples Home Equity awaits statements from Federal Chair Janet Yellen to be released on Tuesday, February 11th. Yellen’s statements will be influential for both housing and mortgage rates.
Federal Chair Janet Yellen will address the House Financial Services Committee for the first time on Tuesday morning. The pressure is on as testimony comes just a little more than a week after Yellen replaced predecessor Ben Bernanke. The topic of the testimony will be the nation’s monetary policy and economic outlook.
Peoples Home Equity, which often references labor data points, such as initial jobless claims, thinks this particular testimony is important due to the level of unemployment in the country. No, the lender is not concerned with high unemployment, but the rate at which it stands now, and how that translates into when the Federal Reserve will raise interest rates. The Federal Reserve has previously stated in December 2012, that it may begin rising the Fed funds rate once U.S. unemployment rates 6.5%. The current unemployment rate of 6.6% is just 0.1% shy of 6.5%, implying an interest rate hike may be just around the corner.
People Home Equity thinks mortgage rates will continue higher if the Federal Reserve continues to taper and issue statements saying they intend to keep interest rates low for an extended period of time. To hedge the risk of rising rates, Peoples Home Equity encourages prospective home buyers to just apply for a home loan now because positive economic data points or emerging market headlines resume positive. Mortgage rates are not going to remain low forever. The recent pull back in rates should be viewed as an opportune time to obtain a 30-year fixed rate mortgage.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.