Financial News for June 2007

Construction of new homes in May 2007 fell to a seasonally adjusted annual rate of 1.47 million units, a 2.1% drop from April 2007 and a 24.2% decline from a year ago, the Commerce Department reported June 19, 2007. The decrease matched economists’ expectations and reflected weakness in the South and West, which offset construction gains made in the Northeast and Midwest.

Housing permits, considered a good barometer of future activity, rose 3% in May 2007, but the increase followed a 7.1% plunge in April 2007. Last month’s stronger activity originated from a rebound in permits for apartment construction. Meanwhile, mortgage applications for single-family homes fell 1.8% and have been down four of the past five months.

The National Association of Home Builders reported on June 19, 2007 that its survey of builder sentiment sank two points to 28 in June, the lowest since it hit 27 in February of 1991. Readings below 50 mean more builders view market conditions as poor rather than favorable. All three major components of the index — sales, sales expectations and buyer traffic — posted declines.

Delaware Mortgage Rates on 30-year mortgages, after rising for five straight weeks, edged down slightly for the week. Rates have been pressured by rising yields on the benchmark 10-year Treasury note.

For the week ended June 15, unemployment claims rose by 10,000, to 324,000, the highest level since mid-April. While the increase was unexpected, analysts said the labor market remained strong.

If you would like to apply for a Delaware Home Loan, you can APPLY ONLINE HERE, you can call John R. 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