Weekly mortgage applications report on Wednesday could enlightening for the market given that housing data announcements will be few this week.
Chicago, IL (PRWEB) March 10, 2014
Peoples Home Equity was disappointed to see a negative change in home sales last week from DQnews.com. However, the lender believes that a strong rebound will be viewed in later weeks.
DQnews.com, a housing analytics recourse website, published their weekly “National Home Sales Snapshot” on March 6th. The report showed that national home sales had declined -2.7% week-over-week, while median home prices remained unchanged. The negative change is congruent with the downtrend that began in September 2013. Weekly home sales used to report over 260,000 in September 2013, but they have since dropped to 162,418 as shown on March 6th. Weekly home sales are now as low as March 2013. Home prices have outperformed sales by a wide margin. Sales have declined approximately -40% from its September high, while prices have declined just -11.5%. Home sales are now just 30.9% above their low from January 2009 when they just to be 90% above this level during September 2013. Median home prices are 12.4% above their March 2012 low vs. being up 54% in September 2013. The culprit of this home sale drought is viewed as not enough real estate inventory on the market as well as tight lending standards inhibiting applicants to obtain financing. To make matters worse mortgage rates have recently reached a 2 month high at 4.51% for a 30-year fixed rate mortgage, as shown on to MortgageNewsDaily.com.
Peoples Home Equity was disappointed by the data released because the last report showed a positive change in sales and prices, and since then weekly mortgage applications increased 9.4%. The trend looked like it was about to change as we begin spring, however the trend down has resumed. The lender still expects the market to rebound as another cause of the lack in home sales is assumed to be cold weather. Weather temperatures are now increasing which should begin to seasonally relate to an increase in housing activity (both mortgage applications and home sales). Weekly mortgage applications report on Wednesday could enlightening for the market given that housing data announcements will be few this week.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300