Chicago, IL (PRWEB) May 07, 2014
On Wednesday, May 7th, lenders such as Peoples Home Equity were exuberant to see a large and sharp rebound in mortgage applications from last week. Also on Wednesday Fed Chair Janet Yellen testified before congress today, highlighting weakness in the housing market as a risk for the economy.
As shown on TradingEconomics.com, weekly mortgage applications increase 5.3% last week which was a relief to see considering applications declined -5.9% the week prior. Wednesday’s announcement was the highest change in weekly applications since 9 weeks before. The 8 week moving average had been -1.63% but it has now moved up to just -0.71%. Peoples Home Equity has seen that housing activity picked up significantly in April. The lender expects home sales to continue increasing through the spring and summer. The environment looks even better for home prices. Both seasonal demand and shortness of inventories are acting as two reasons for price to rise further.
In other news Fed Chair Janet Yellen has found this year performance in housing rather disappointing, despite seasonal demand coming back. FederalReserve.gov quotes Fed Chair Yellen saying “housing activity--a sector that has been recovering since 2011--have remained disappointing so far this year and will bear watching.
Housing market listeners appreciated these words from the Fed Chair as they sounded reassuring of a continued policy to support the housing recovery. Mortgage rates have reacted by continuing their sell off which began last Wednesday, March 30th.
As shown on MortgageNewsDaily.com, the rate on a 30-year fixed rate mortgage declined 0.17% from 4.37% on the 30th to 4.2% at the close of May 7th. Peoples Home Equity keeps encouraging home buyers to at least get pre-approved for this relatively low rate before the uptrend since 2012 resumes moving higher.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026