Chicago, IL (PRWEB) February 13, 2014
Economic data relating to housing has been quite discouraging over the past week. Weekly mortgage applications posted a decline on Wednesday, February 12th. Today we learned that median home sales and prices have fallen week over week while initial jobless claims rose! The only break Americans caught was seeing 30 year fixed mortgage rates decline 0.4% today. Peoples Home Equity does not expect the status quo to persist for long.
According to The Mortgage Bankers Association on February 12th, weekly mortgage applications fell -2.0% for last week. This news comes after a slight rise in from the week prior. The MBA report stated “The refinance share of mortgage activity remained unchanged at 62 percent of total applications from the previous week” which emphasizes the point as to why weekly home sales have been so sluggish.
This morning, the market learned from the US Labor Department reported that initial jobless claims rose 2.4% from last week. Claims climbed from 331,000 to 339,000 ending the week of February 7th. Peoples Home Equity was ok with this number is it was not too high of a rise. To finish the negative reports off, DQnews.com showed that both weekly home sales and prices decline week over week. Home sales declined -2.7% from last week and median home prices declined -0.9%. Home sales at 167,894 are now below year ago levels which were 173,018.
Peoples Home Equity expects the housing market to work itself through its current sluggishness and experience a big rebound in home sales during the spring and summer months. The lender highlights this year’s particularly cold winter on dismal seasonal home sales. Prospective loan applicants should not conclude that recent economic data translates into having additional time to apply for a loan. On the contrary mortgage rates are expected to rise on any number of positive headlines that could hit the press, be it rising home sales, equity markets, or additional Fed tapering. We have already seen mortgage rates rebound due to the rising equity markets this week. With unemployment still declining Peoples Home Equity thinks it only a matter of time before both mortgage application and home sales move much higher.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300