New home sales are regarded as a critical part of the housing recovery according to Peoples Home Equity because they add new supply to the housing market.
Chicago, IL (PRWEB) March 23, 2014
Peoples Home Equity reminds readers that next week will be quite busy regarding housing data. As shown from the calendar page from TradingEconomics.com, the most important announcements will be release on Tuesday starting with two different home price indices and new home sales. On Thursday, the market will see the latest data on pending home sales. Per usual, Peoples Home Equity will also be paying attention to weekly mortgage applications and initial jobless claims on Wednesday and Thursday.
On Tuesday, March 25th, the Federal Housing Finance Agency (FHFA) and S&P/CASE SHILLER will release their respective January 2014 home price indices. While these indices are a lagging indicator they do confirm or reject monthly housing data reports relating to prices. The S&P report will be especially useful when comparing how different cities are doing. Their 20-city composite index a minor decline of -0.33% for 4th quarter 2013, and a miniscule -0.15% change from November to December 2013. Lastly, new home sales will be released after the home price indices. New home sales are regarded as a critical part of the housing recovery according to Peoples Home Equity because they add new supply to the housing market. Existing homeowners are given the option to upgrade and move into a new home subsequently listing their home for sale giving an opportunity for first-time homebuyers to purchase. The reason why the lender places emphasis on existing homeowners to purchase a new home rather than first-time homebuyers is because obtaining a mortgage is easier for a homeowner. Note, new home sales were at multi year highs for January 2014, both lenders and homebuyer are hoping for a similar announcement on Tuesday.
Interesting housing data on Wednesday will be reserved to weekly mortgage applications which lenders, like Peoples Home Equity, focus on. Hopes will be high that applications will surge as the real estate market enters the spring selling season.
Thursday, will begin with weekly initial jobless claims data, which has seen its 4-week moving average improve by declining over the few weeks. However, the focus will quickly shift to pending home sales which were dismal for January 2014. January Pending home sales, released by the National Association of Realtors posted the lowest number since 2011. Blame in the Midwest, which is where Peoples Home Equity centers most of its locations, has mostly been placed on low inventories (hence the hope for a high new home sales reading), and unusually cold weather.
Peoples Home Equity encourages potential homebuyers and homeowners alike to pay attention these upcoming data announcements as they will be very informative about the state of America’s real estate market.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.