An improving labor market is persuading the Federal Reserve to end its QE policy sooner and raise interest rates, directly effecting mortgage rates.
Chicago, IL (PRWEB) March 20, 2014
Peoples Home Equity was content to see just a slight rise in initial jobless claims today. The labor market is improving, which is great for jobs, but has a negative connotation for financing rates in the long term. If possible, obtaining a home now soon is a good idea.
The U.S. department of Labor released its initial jobless claims figure today, March 20th, which showed just a week over week increase of 1.58%. Claims increased slightly from 315,000 to 320,000 for the week ending on March 14th. The news was positively regarded by Peoples Home Equity as the increase was still below the 4 week moving average which has now declined from 330,500 to just 327,000. The lender believes that when the average number of claims is this low, the employment market should begin to shine.
Initial jobless claims number differed among states. For the week ending on March 1st, the highest insured unemployment rates were in Alaska (5.5%), New Jeresey (4.0%), and Rhode Island (4.0%). For Wisconsin and Illinois, where People Home Equity has many of its lending branches, the rates were 3.5%, and 3.4%. The largest increases initial claims for the week of March 8th were seen in Pennsylvania, Washington, Wisconsin, Arkansas, and Illinois. Meanwhile the largest decrease was seen in New York, Michigan, California, Connecticut, and New Hampshire.
The Federal Reserve with concluded its latest policy meeting of the Federal Open Markets Committee on Wednesday, March 19th, gave a cautionary tone that interest rates may be raised sooner than expected given, in part due to the significant improvement of the labor market. The Federal Reserve has already moved to taper is quantitative easing program (QE) back from $85 billion to just $55 billion this March. As the average initial jobless claims continues to remain low, the employment situation in America will improve, which is great for citizens, but possibly negative for prospective mortgage applicants. An improving labor market is persuading the Federal Reserve to end its QE policy sooner and raise interest rates, directly effecting mortgage rates. Rates have already been on a steady uptrend since 2012, Peoples Home Equity does not see this trend slowing before the Federal Reserve intentionally raises rates. The lender encourages prospective mortgage applications to apply for a home loan now before purchasing a property becomes less affordable due to financing rates.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.