Peoples Home Equity was disappointed to see new home sales decline -7% in December. This monthly home sales report confirms recent weakness in U.S. real estate.
As shown on TradingEconomics.com, new home sales for December may have declined from 445,000 in November to 414,000 in December. New home sales have now slid for 2 consecutive months, but today's figure is still the 9th highest reading in 4 years. In addition December sales were 4.5% higher than December 2012. On the whole, sales for 2013 were the highest seen in five years which sheds some positive light on the negative report. Despite today's disappointing release, prospective home buyers will probably gain from this as mortgage rates will have an economic incentive to remain neutral. According to MarketWatch.com, the initial reaction in the bond market after new home sales were released was an approximate 2 month low in the U.S. 10-year note. Peoples Home Equity thinks prospective home buyers should recognize the recent weakness in interest rates and seize this opportunity to obtain a competitive rate mortgage.
Today's economic release has raised questions in the market regarding the housing recovery, however, Peoples Home Equity is optimistic and looks forward to February's new home sales report. Since January 2012, new homes sales reports have never been negative for more than 2 months in a row. The lender expects next month to have a higher chance of being positive due to the recent increase in weekly mortgage applications over the past 3 weeks.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300