Chicago, IL (PRWEB) February 28, 2014
Peoples Home Equity was disappointed to see weekly mortgage applications descend to an annual low on Wednesday February 26th. The negative news kept on coming on Thursday, February 27th when initial jobless claims posted a 4.19% rise. Fed Chair Janet Yellen also spoke before congress on Thursday giving some mixed opinions about the U.S. economy in the past and going forward.
Weekly mortgage applications declined -8.5% for the week ending on February 21st. This news is particularly demoralizing to see since applications already fall -4.1% and -2% over the previous two weeks.
Initial jobless claims, which Peoples Home Equity follows closely, reported a rise for the week ending on February 21st. It may not be surprising, but both continuing jobless claims (which also rose) and weekly mortgage applications simultaneously posted detrimental readings over the past 3 weeks.
Later on Thursday, Fed Chair Janet Yellen told congress that the housing market seen a nice recovery due to the efforts of the Feds quantitative easing program (QE). Despite comforting words, Yellen said the Federal Reserve would continue tapering its successful QE program while watching how much recent weakness in the economy was related to the unusually cold winter. The Fed Chair also spoke about housing more directly commenting on now the Nevada housing market would experience “a long slog before things are back to normal” according to the Las Vegas Review Journal, on February 27th. The reason for this ‘slog’ corresponds to the difficulty of available credit to many families in Nevada as well as other parts of the country.
Peoples Home Equity thinks the majority of negative headlines relating to housing will begin to wane by the end of the first month of spring. More announcements such as Wednesdays higher than expected rise in new home sales should become more common among other data points as more Americans become employed. Time will only tell.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.