Chicago, IL (PRWEB) April 30, 2014
This week has been quite eventful so far for market spectators like Peoples Home Equity. The news of the week was that pending home sales ended a multi-month losing streak. However, the S&P/Case-Shiller National Home Price Index posted a decline in February, mortgage applications declined more than expected last week, and the U.S. GDP growth rate marginalized to a meager 0.1%.
On Monday, April 28th, the National Association of Realtors released their March pending home sales report showing a 3.4% rise for the month. This data was significant since it bodes well for sentiment regarding housing. The data also confirms that the spring selling season has returned. People Home Equity anticipates continued positive pending home sales readings for April and May.
On Tuesday, April 29th, announcements began to turn negative. The S&P/Case-Shiller National Home Price Index posted a -0.33% decline for February. However, this news was not too negative as it was past information showing data for a period which the market now knows was weak. The interesting part of the report was viewing the cities that posted a 0.5% rise or better during February which signals regional market strength. These cities were San Diego at +1.04% and Portland with +0.82% which is of no surprise as the west coast has been experiencing stronger housing activity throughout the winter season versus the east and Midwest.
On Wednesday, April 30th, news did not improve regarding housing or the economy. As shown on TradingEconomics.com, weekly mortgage applications posted a decline of -5.9% which was the worst drop in 9 weeks! The fall in applications is somewhat demoralizing for lenders though home sales are rising. The discrepancies proves that investors are still a large portion of buyers while prospective individuals may not feel confident enough, due to stricter lending standards to apply for a mortgage. Savings are also an issue, either the rising cost of living; Americans are finding it difficult to save up for a reasonable down payment.
The last significant data announcement this week was that GDP growth fell to a meager 0.1%. This figure was the worst since five quarters ago. Growth had averaged 2.57% for the past 4 quarters but now the average has declined to 2.32%. However, economists still predict rise in GDP for the 2nd quarter of 2014. Despite the negative news, Peoples Home Equity remains optimistic of both the housing market and GDP growth going into the next quarter.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026