The mortgage rates are at the best level that they have been since the Feds Started the mortgage-backed security buying program in December 2008.  The Federal Reserve meeting last week stated again that they would leave rates at low levels for some time. This in spite of the stock market rallying, consumer confidence on the rise, and better than expected housing numbers. But the outlook for mortgage rates is one in which rates must rise. Right now Delaware Mortgage Rates are almost in the high 4s and low 5s depending on your particular situation with no points.

The federal reserve will have to start selling back the mortgage bonds they have bought by end of the year which will cause a surplus on the market which means mortgage bond prices will fall causing home loan rates to rise. Home loan rates have dipped again because of the debt problems of Greece, Spain, and Portugal. This has caused foreign investors to dump European fixed investments in favor of US Treasuries and mortgage-backed securities. With a bailout in the works from the World Bank, we could see home loan rates rise as the European debt crises abate.

The biggest news this weekend was the ending of the First Time Home Buyer Tax Credit for $8,000 and the Move up buyer tax credit of $6,500.  April 30, 2010, was the deadline to be under contract.  Those that this deadline must close by June 30, 2010, in order to still qualify for the tax credit.

Delaware Mortgage Rates will probably rise this week as all of the economic news that will be released this week seems to be very good news for the economy which means money will money out of the bonds into stocks as we saw today. The mortgage bond ended down from Friday’s close. So now is the time to lock in your rate as the outlook for the week is for mortgage interest rates to rise in Delaware and across the nation.

If you are looking to refinance or purchase a home in Delaware then now is the time to do it in order to take advantage of historically low-interest rates. Please feel free to call me or e-mail me for a free mortgage planning consultation.

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