Lenders, like Peoples Home Equity, are waiting for the decline in initial jobless claims and unemployment rate to translate into increases in mortgage applications months down the road.
Chicago, IL (PRWEB) March 13, 2014
Peoples Home Equity noticed initial jobless claims posted a surprise decline for the week ending on March 7th. This news is uplifting after yesterday’s negative weekly mortgage applications report. In addition, today's initial jobless claims report thwarts anxieties about February's 0.1% rise in the national unemployment rate.
The U.S. Labor Department released their initial jobless claims number today and it showed 315,000, which is a -2.7% decline from the prior week reading of 324,000. This announcement follows a -7.16% decline for the week that ended on February 28th, which was 349,000. Both of the last two reading are below the 4 week moving average of 330,500, which is very positive. The low 4-week moving average is encouraging to see, according to Peoples Home Equity, as the swing in initial jobless claims figures have been volatile since the end of September. The variance in the readings have swung widely, especially during the beginning of October 2013 and January 2014.
Looking at past data released today from the U.S. Department of Labor for March 1st, the largest increase in unadjusted claims were in “New York (+18,709), Florida (1,940), Illinois (+1,789), Texas (+1,245), and New Hampshire (+849), while the largest decreases were in California (-5,765), Georgia (-5,437), Massachusetts (-3,770), Pennsylvania (-2,086), and South Carolina (-2,006).” New York looks a bit concerning as its state also has a high foreclosure rate, but overall Peoples Home Equity views the recent drop in claims as encouraging for America, when concerns are rising that the economy may begin slowing.
Lenders, like Peoples Home Equity, are waiting for the decline in initial jobless claims and unemployment rate to translate into increases in mortgage applications months down the road. First-time home buyers are playing an ever more important role in the housing recovery. As more young Americans become employed, the activity in real estate with increase, likely pushing mortgage rates even higher. Peoples Home Equity encourages individuals to get approved for a competitive fixed rate home loan now before obtaining a mortgage becomes less affordable.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.