Chicago, IL (PRWEB) March 22, 2014
Peoples Home Equity was rather disappointed to see the last decline in weekly home sales according to DQnews.com. The “National Home Sales Snapshot” did report a 1% rising home median home prices; however, declining sales and rising prices does not instill confidence for a resurgence of demand, especially when weekly home sales have declined steadily since September 2013.
The National Home Sales Snapshot was released on Thursday, March 20th, which is the same day that February existing home sales were announced. Weekly home sales declined -2.7% last week. Peoples Home Equity was hoping to see a rise in sales since the last report was also a positive report. However, due to this week's fall, the downtrend remains intact. Weekly home sale are now -6.1% from a year ago, and -53% below their cycle higher in June 2006. At least sales remains 28.5% above their cycle lower in January 2009.
When Will The Downtrend Reverse?
Peoples Home Equity is confident that sales will soon rebound as we pass into this spring. Seasonal demand should return after being hampered through a very cold winter. Other parts of the country, particularly the warmer regions in the south and west have actually seen an increase in home sales particularly justifying their rising property valuations. However, the Midwest has been unusually cold in the winter affecting the lending business, which Peoples Home Equity knows all too well. The lender has been strongly encouraging all of its prospective mortgage applicants to get approve now and the current rate offered. Why? Mortgage rates have been on a steady uptrend since 2012, which an expected resurgence of demand in the spring, rates are expected to rise even further. Then, if one accounts for the Federal Reserve’s tapering of quantitative easing and its objective of intentionally raising interest rates, then mortgage rates will instantly increase! If one believes that rates should decline on weakening demand for housing…then the current home situation should be influencing mortgage rates right now, but they are not due to the greater number of forces pushing rates them higher.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.