Following new and emerging unemployment rates helps lenders know if they can expect national credit scores to increase or decline.
Chicago, IL (PRWEB) February 20, 2015
Peoples Home Equity was pleased to read that jobless claims fell far more than expected last week. Low jobless claims numbers coupled with overall low unemployment and sub 4% mortgage rates have excellent ramifications for the housing market in the spring and summer time.
As shown on TradingEconomics.com, initial jobless claims fell 21,000 to 283,000 for the week ending on February 14th. This report was especially uplifting, given that claims had risen for 3 prior consecutive weeks: from 267,000 in January to 279,000 to 304,000 to finally falling back down to 283,000 last week.
Lenders like Peoples Home Equity pay attention to initial claims because it tracks an ever changing labor market. Moreover, the data is weekly, which greatly beats waiting for the lagging unemployment report. Following new and emerging unemployment rates helps lenders know if they can expect national credit scores to increase or decline, which helps lenders like Peoples Home Equity who have branches locations scattered across the United States.
Current jobless claims show that America’s labor market has strengthened over the past week. Apart from a positive view on labor, Peoples Home Equity reminds readers that mortgage rates for 30-year fixed rate conventional loans remain below 4%. As of yesterday, February 19th, MortgageNewsDaily.com showed that the average rate for a 30-year fixed loan was 3.84% and 3.5% for a 30-year FHA loan. Meanwhile, a 15-year fixed loan was just 3.11%, which is lower than what 5/1 ARMS are selling for at 3.15%!
A strong labor market, coupled with low mortgage rates, is bound to keep pushing real estate prices higher, especially since housing inventories remain well below demand.
If you are in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026