Instead what the market witnessed the highest ISM level since 2005
Chicago, IL (PRWEB) August 05, 2014
Lenders like Peoples Home Equity were paying close attention to the direction of mortgage rates on Tuesday. Given the higher volatility witnessed in equity markets both last week and Tuesday, August 5th, lenders are unsure whether the trend in equity prices and mortgage rates will resume higher or a deeper pullback will ensue.
As shown on TradingEconomics.com on Tuesday August 5th the ISM manufacturing Index for July was announced as higher than expected with a reading of 58.7. This reading was 3.5% above analyst expectations of 56.67. Instead what the market witnessed the highest ISM level since 2005. In addition, factory orders showed a 1.1% increase June which was higher than the 0.28% reading analysts were expecting.
Mortgage rates finished the day just barely higher after an intra-day battle between two factors. Positive economic news and selling pressure for equities due to renewed anxieties of a Russian invasion in Ukraine occurring soon.
Peoples Home Equity believes today’s weakness in equities will be followed by lower mortgage rates which are great for home buyers. In fact, home buyers should take advantage of an opportunity whenever there is a stock market correction as home prices may be cheaper. However, individuals must prepare themselves if a market correction is not looming around the corner and instead stock and home prices may trend higher. After all, the saying “the trend is your friend” is one to be respected. Prospective mortgage applicants should at least get pre-approved for a home loan now while mortgage rates are relatively lower now instead of risking a higher premium in the future.
Contact a Peoples Home Equity loan officer today at: 262-563-4026