Delaware Mortgage Rate Weekly Update for June 3, 2013
Delaware mortgage rate weekly update for the week of June 3, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John is the Newark, Delaware Mortgage Branch Manager and the author of the book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a free mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan
Delaware mortgage rates moved higher again last week after a big sell-off on Tuesday in the mortgage bond market as you can see on the mortgage bond chart below. The big Red Candle on Tuesday shows the bond market dropped over 100 basis points moving mortgage rates higher. Mortgage rates have been moving higher since the beginning of May when rates were at all-time record lows. The bond tried to stabilize to end the week so we are recommending FLOATING your Delaware mortgage rate to start the week but if mortgage bonds resume their sell-off we will quickly switch to a locking stance.
If you received a mortgage rate quote over a week ago, better check with your lender as if your rate is not locked then it will certainly be higher now.
Friday we saw the release of Consumer Confidence report which came in better than expected and fueled a rally in the stock market. Consumer Confidence measures how optimistic or pessimistic consumers are about the economy. The reading for May 2013 hit a 5 year high at 76.2 which was a big jump up from April 2013.
The read on inflation came out last week and the Personal Consumption Expenditures (PCE) came in very tame and is running about 1.1% which is well below the Federal Reserves target of 2%. The PCE is the Federal Reserve’s favorite gauge on inflation so this is bond friendly news as inflation would make home loan rates move higher.
In Housing News, the Case-Shiller 20 City Home Index rose by 10.9% year over year and was the best one year gain in over 7 years. This was also a better reading than expected so this shows again that the housing market is making a recovery and home prices are continuing to increase. So if you are considering buying a home now is the time to do it because the longer you wait for the more it will cost you with rising home prices and rising interest rates.
In local news, the Delaware State Housing Authority announced a new program called the Delaware Mortgage Credit Certificate which gives a tax credit to first time home buyers on their tax return when they file based on the interest they pay on the mortgage each year. Can only use the program through an approved lender and Primary Residential Mortgage is an approved lender. You can get more information on the program by calling 302-703-0727 or you can apply online.
Call 302-703-0727 to schedule a free mortgage consultation to get pre-approved for a mortgage to purchase a home or to refinance your existing mortgage to lower your rate and save thousands of dollars in interest. There are several special governments refinance programs to help underwater Delaware homeowners refinance. There is the FHA Streamline Refinance Program, the VA IRRRL Streamline Refinance Program, and there is the HARP 1.0 and HARP 2.0 refinance programs. Call us or e-mail us now to get more information or you can APPLY ONLINE.
The next Free Delaware First Time Home Buyer Seminar is Saturday, June 22, 2013, in Newark, Delaware and Tuesday, June 18, 2013, in Dover, Delaware. Register by calling 302-703-0727 or Register online at http://www.delawarehomebuyerseminar.com/
Then next Free Maryland First Time Home Buyer Seminar is Saturday, June 15, 2013, in Towson, Maryland. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com
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