Mortgage rates have every reason to trend higher over time as The Federal Reserve is intentionally planning to raise interest rates in the next 18 months.
Chicago, IL (PRWEB) April 20, 2014
With the onset of spring and temperatures rising, America is once again seeing a seasonal increase in home sales. On April 18th, in an release named “Weekly Home Sales Show Staggering Rise”, Peoples Home Equity noted that home sales rose for the 4th consecutive time this week.
Next week will be quite eventful regarding U.S. housing data. Peoples Home Equity is looking forward to seeing a host of different announcements from February's House Price Index, to March existing home sales, March new home sales, and weekly mortgage applications. Given how positive data was this week, confirming reports next week could really build momentum in consumer sentiment and grow mortgage originations.
Tuesday, April 22nd begins with the house price index from the Federal Finance Housing Agency. TradingEconomics.com shows that the agency has posted a positive change in home prices for 23 of the past 24 months. Peoples Home Equity expects to see another positive change announced for February as other reports have already shown increased prices during the month. March existing home sales will also be released, which have shown a decline for 5 of the past 6 months. Existing home sales have been so dismal throughout the winter that any increase will probably be regarded as uplifting for real estate experts.
Wednesday begins with weekly mortgage applications being released first thing in the morning. Since applications already surged by 4.3% last week Peoples Home Equity does not expect a double repeat. However, if this occurs, prospective mortgage applicants better react fast as the likelihood of interest rates moving higher will increase. Readers must remember that besides consumer demand mortgage rates have every reason to trend higher over time as the Federal Reserve is intentionally planning to raise interest rates in the next 18 months. Now is the time to plan and apply for a home loan before purchasing a home becomes less affordable. Peoples Home Equity offers a number of different loan types to help finance any homebuyer. The lenders website also helps with the planning process by providing a number of different mortgage calculators from “How much do I have to earn?” for a home loan to “How Much Can I Borrow?”.
New home sales will be the main data attraction for Wednesday as they are regarding as the critical element of the housing recovery. New home sales add inventory to the market which attracts homeowners to move into a new property and gives an opportunity for first-time homebuyers to purchase a used home. New home sales declined in February but still remained approximately 60% above it trough and 4.9% below its peak, as shown on TradingEconomics.com.
Peoples Home Equity encourages readers to pay attention to these data announcements next week as they will be very telling of the direction of both home prices and mortgage rates.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026.