Chicago, IL (PRWEB) March 05, 2014
Peoples Home Equity was pleasantly surprised to see weekly mortgage applications jump 9.8% for the week ending the month of February. The news shed positive light on the housing market and its potential to rebound as we enter spring time. The ADP employment report also showed a positive change for the week adding more to Wednesday’s optimism.
The Mortgage Bankers Association released their weekly mortgage applications numbers on Wednesday, March 5th, which showed a rebound from a dismal -8.5% reading from the week ending on February 21st. In addition, Wednesday’s reading was the first positive announcement since 4 weeks ago when applications rose a meager 0.4%.
Refinance activity decrease to 57.7% from 58% in the week prior. As for purchase mortgage applications, the average rate on a jumbo loan descended from 4.53% to 4.47%. For a 30-year fixed rate loan the rate declined from 4.47% to 4.37%. For an FHA loan the rate declined from 4.17% to 4.13%, and for a 15-year fixed mortgage the rate declined from 3.56% to 3.52%.
Peoples Home equity believes the positive change in weekly mortgage applications will support DQnews.com. The last weekly DQnews report from February 27th showed national home sales increased 0.8% for the first time since January. The increase in applications may be reflected in tomorrow's DQnew report on March 6th showing another increase in home sales. Time will only show.
Apart from mortgage applications, the number of U.S. private employers added139,000 jobs in February which is 9.44% above that of January. Despite the rise, the market consensus was for a 20.47% rise to 153,000 in February. Peoples Home Equity was not expecting such a high number due to the relatively higher number of initial and continuing jobless claims seen throughout February. The lender still the labor environment is continuing to move in the correct direction and expects to see a higher employment report for March. In the meantime it is a good idea to get pre-approved for a home loan now before real estate activity picks up later in the spring and summer possibly causing mortgage rates to move higher towards 5%.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300