Prospective mortgage applicants, especially young first-time home buyers, eager to stop paying their rent, are expected to flood lenders with applicants this year.
Chicago, IL (PRWEB) February 21, 2015
Lenders like Peoples Home Equity were not pleased to see median home sales post yet another decline. In general it has not been a good week for housing data given that the NAHB’s Housing Market Index posted a larger than expected decline, Mortgage Applications fell more than expected, and Housing Starts and Building Permits fell compared the month prior.
On Thursday, February 19th, DQnews.com released its latest “National Home Sales Snapshot” reporting that weekly median home sales declined -2.4% while prices fell -0.7%. This puts median home sales at a seemly dismal trough at just 176,452 when compared to +260,000 observed in the late summer of 2014. However, Peoples Home Equity is optimistic about this data because compared to a year ago, home are 4.2% higher. This data marks the third consecutive week median home sales have increased versus a year ago.
Peoples Home Equity is also optimistic about how mortgage applicants will react to the end of tax season and the winter on March 20th. Peoples Home Equity expects a surge in mortgage applicants after individuals/families file their 2014 taxes showing the income/combined incomes of their new jobs or pay raises. America’s labor market is in its strongest position since prior to the recession. American’s have had a chance to pay their bills, restore and build their credit, and save for a down payment. Prospective mortgage applicants, especially young first-time home buyers, eager to stop paying their rent, are expected to flood lenders with applicants this year. This is quite an optimistic view given that home builders showed they were less optimistic about the housing market in the NAHB’s February Housing market Index released on February 17th. However, Peoples Home Equity is also confident home builders will have their confidence renewed once they witness stronger demand from young first-time home buyers.
The national average for a mortgage rate remains below 4% for all home loan durations. Peoples Home Equity strongly encourages all prospective mortgage applicants to complete their taxes quickly this winter and apply for a home loan before everyone else. The sooner approved for a mortgage, the sooner one knows how much they can afford to approximately filter their property search.
If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026