A Good Day For Americans Both Mortgage Rates And Initial Jobless Claims Decline

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Peoples Home Equity comments on Thursdays economic announcements.

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Thirty year rates are now at 4.18% which is attractive considering they were as high as 4.48% on April 22nd.

Good news for Americans today, initial jobless claims declined for the first time in 4 weeks and mortgage rates declined for the 3rd day in a row and. Peoples Home Equity views Thursday May 8th a positive omen that less Americans are in need of benefits and more will be able to afford a mortgage at a lower rate.

Initial jobless claims declined from 345,000 on April 28th to 319,000 on May 8th. This announcement was significant as claims were rising for the past 3 consecutive weeks. Keeping claims as close to 300,000 per week is key to seeing the continued decline in unemployment. Peoples Home Equity follows initial jobless claims closely as it serves as a leading indicator of the number of Americans unemployment and subsequently how many may apply for a home loan in the future.

In other news, 30 year fixed mortgage rates declined for the 3rd consecutive day, as shown on MortgageNewsDaily.com. Thirty year rates are now at 4.18% which is attractive considering they were as high as 4.48% on April 22nd. With the resurgence of seasonal demand Peoples Home Equity view the recent pullback in rates as the perfect time for first-time homebuyers to apply for a mortgage. The current environment for first-time homebuyer’s sure beats what many lenders and analysts expected which was high rates and real estate prices come May. However, housing demand has been weak this year, and geopolitical tensions have weighed down on equity markets which have put downward pressure on mortgage rates. Readers should remember that the Federal Reserve is tapering its quantitative easing program by $10 billion a month. One of the goals the Fed has by ending this program is for interest rates (and thus mortgage rates) to rise. Further, once the program ends, the Fed also plans to intentionally raise interest rates which will cause an instant overnight shift higher in mortgage rates. Thus, Peoples Home Equity has been strongly encouraging its prospective mortgage applicants to apply now for a mortgage before purchasing a home become less affordable due to higher prices and 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

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Giorgio U Ferrero
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