The forecast is that rates will resume their recent rally and show an increase to 4.37%.
Chicago, IL (PRWEB) October 07, 2014
Peoples Home Equity is waiting for Wednesday’s weekly mortgage applications report to be released at 8am eastern according to TradingEconomics.com. No one is expecting any surge in applications. The forecast is for a slight -0.04% decline which sets up for a nice surprise if the announcement outperforms. Thirty year mortgage rates are expected to show a rise over last week as investors are buying up bonds and anxiously waiting to hear if the Fed is going to raise rates at the end of the month or not…
Peoples Home Equity has been disappointed in the performance of weekly mortgage applications over the past 12 weeks. It seems as though every time there was a positive report a negative announcement would follow. Fortunately 30-year mortgage rates have held around 4.33% over the past 3 months however investors may be in for a surprise tomorrow. Last week was the first time rates fell after a 3 consecutive rise. The forecast is that rates will resume their recent rally and show an increase to 4.37%.
Lenders like Peoples Home Equity know that when expectations are low pleasant surprises occur. Mortgage applications have fallen for the past two weeks. The market may see that Americans rushed to apply for a home loan last week on fear that the Fed is going to raise interest rates at the end of October. If the Fed does increase rates at the end of October, lenders indeed will automatically shift mortgage rates higher overnight. From this reason, Peoples Home Equity encourages Americans to apply for a home loan now and get pre-qualified before the rates resume higher. The market believes the Fed will raise rates at the end of October or announce a third installment of quantitative easing which is much less likely to occur.
Contact a Peoples Home Equity loan officer today at: 262-563-4026