New Home Sales Decrease Yet Mortgage Rates Continue Higher
Chicago, IL (PRWEB) December 25, 2013
New home sales declined on Tuesday December 24th from a 5 year high in October, while mortgage rates continued higher. Peoples Home Equity reminds readers that rates may ignore recent weakness in economic data points and persistently move higher into 2014 due to The Feds unwinding of quantitative easing.
According to the U.S. Census Bureau, new homes sales posted declined 2.1% from 474,000 in October to 464,000 in November. Despite the slight pull back, new home sales remain at their 2nd highest level in 5 years. Peoples Home Equity views Tuesday, December 24th report more positive than negative. New home sales remain in a stark uptrend, declining on 9 times (37.5%) in the past 24 months, including the one just announced.
Peoples Home Equity produced issued a release back on November 15th, 2013 that show mortgage rates are relatively lower in the winter months of December, January, and February. The release was titled “43 Years of Data Shows Historical Bias in Mortgages Rates.” Unfortunately, this winter may be different due to low real estate inventories coupled with the Federal Reserve finally unwinding its long running policy of quantitative easing.
As the Fed continues to taper its asset repurchase program in upcoming 2014, Peoples Home Equity expects mortgage rates to trend higher. The lender strongly encourages prospective home buyers to at least apply for a home now loan in hopes of locking in a satisfactory mortgage rate now it becomes too expensive. As shown on MortgageNewsDaily.com rates moved to fresh 3 months highs on Tuesday, December 24th. The mortgage rate on a 30-year fixed rate mortgage now stands at 4.64%, which is just a few percentages points below the below the highest rate seen in the past 52 weeks, 4.84%.
To prepare for applying for a home loan Peoples Home Equity offers users many online tools. Users may calculate their hypothetical monthly payment, how much they must earn to afford a certain credit size, or how much will they save by refinancing a loan.
Please contact a Peoples Home Equity loan officer today for all their home loan options at: (855)-897-0300
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