Delaware Mortgage Rates weekly mortgage rate update for the Week of May 5, 2014, by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Newark, Delaware Branch Manager and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware Mortgage Rates moved lower last week as the rally in the bond continued and even bounced back after a very good jobs report on Friday.  If you look at the mortgage bond chart below you can see mortgage bonds were all green candles every day last week which means bonds closed higher than opened. As bond prices move up, mortgage interest rates move lower so last week Delaware mortgage rates continued to improve. We are recommending FLOATING your Delaware mortgage rate to start the week to see if bonds can continue to rally.

In Economic News, the Labor Department released the Jobs Report for April 2014 on Friday and it showed 288,000 jobs were created which was better than the expected 210,000 and the most jobs created in one month in the last two years. The report also showed the Unemployment Rate dropped to 6.3% which is the lowest level since September 2008. But all was not as it seems because the Labor Force Participation Rate (LFPR) dropped to 62.8% which is a 35 year low so this shows unemployment rate dropped not because people going back to work but because people are dropping out of the workforce.

In contrast to 288,000 jobs created we saw on Thursday that the Weekly Initial Jobless Claims continued to rise by jumping another 14k to 344,000 claims for the week. This was above the 315k expected and the highest reading since February.

The Federal Reserve announced it would continue to taper its asset purchase program called QE3. They cut another $10 Billion which reduced the monthly purchase from $55 Billion to only $45 Billion. The Feds goal is to wind the bond-buying program down to zero by the end of 2014. This will eventually move mortgage interest rates up as the Fed demand for bonds drys up.

We saw the release of GDP for the First Quarter of 2014 and it came in very low at 0.1% which was well below expectations and well below the fourth quarter of 2013 which was 2.6%. The low GDP shows that the recovery has a long way to go.

In Housing News, the Case-Shiller 20 City Home Price Index for February 2014 showed a 12.9% increase year over year. The index does show housing appreciation slowing and is looking at a 10% increase for 2014.

The next Delaware First Time Home Buyer Seminar is Saturday, May 17, 2014, n Newark, Delaware. Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com

Then next Maryland First Time Home Buyer Seminar is Saturday, May 24, 2014 in Towson, Maryland and Maryland First Time Home Buyer Seminar June 7, 2014, in Clinton, Maryland. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713