Chicago, IL (PRWEB) February 19, 2014
Peoples Home Equity was discouraged to see a weak report from The National Association of Home Builders (NAHB) today, February 18th. The data starts week off on a shaky footing, but weekly mortgage applications, building permits, and housing start could change things tomorrow.
The NAHB released a housing market index reading of 46 today. This figure was -17.85% below the market consensus of 56. Peoples Home Equity was discouraged to see this data since it was the lowest seen since May of 2013. The index score is important because it’s calculated using a survey of “current sales of single-family homes and sales expectations for the next six months and to rate traffic of prospective buyers” as said on TradingEconomics.com. A score of “over 50 indicates more builders view sales conditions as good than poor” which means todays score of 46 implies relatively poor conditions relating to housing.
Peoples Home Equity thinks the NAHB’s data should be understood with prudence. Yes, home sales are down, and housing inventories are low, but other data points the decline in foreclosures, delinquencies and home prices are showing improvement. Wednesday’s weekly mortgage applications announcement carries more weight as the release is considered a leading indicator of housing demand and subsequently home sales.
Housing starts and building permits, which both posted declines in December 2013, may show a rebound in January 2014. Regardless of a rebound or not, Peoples Home Equity encourages prospective home buyers to apply for a home loan soon while mortgage rates are still relatively lower than in January. The lender is of the opinion that rates will soon rise in the spring and summer months resulting from seasonal home buying. In order to hedge against this risk, individuals should apply and lock themselves into a relatively low fixed rate home loan now.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300