Delaware Mortgage Rates Weekly Market Update for July 14, 2014
Delaware Mortgage Rates weekly market update for the Week of July 14, 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 were able to break the trend and move lower last week. If you look at the mortgage bond chart below you can see mortgage bonds were on a downtrend selling off but then were able to find a bottom last Friday. We recommend floating your mortgage interest rate to start the week on Monday and see if we got a green candle which did. This signaled a possible rally in mortgage bonds which we got and bonds rallied higher all week moving Delaware mortgage rates lower. We continue to recommend FLOATING Your Delaware Mortgage Rate to start the week as t
The Federal Reserve Open Market Committee had their meeting this week and on Wednesday the Fed meeting minutes were released and showed the Feds are planning on continuing to taper their asset purchase program QE3 by reducing the number of mortgage bonds and treasuries bought each month by another $10 Billion at their July and September meetings. This will have them doing a final taper of $15 Billion in October 2014 to end the program.
When the Feds end the Asset Purchase program in October 2014, this could cause a big correction in the Stock Market as stocks sell off. If you look at the chart below you can see that each time the Feds ended their asset purchaser program QE, the stock market ended its rally and sold off. If stocks do sell off after QE3, this would benefit bonds and we could mortgage interest rates stay low.
Thursday we saw the release of the weekly initial jobless claims and they dropped by 11,000 claims to 304,000 claims for the week. If you look at the chart below, you can see that claims have been hovering in the 300ks which is 7-year lows. Even though the Jobs Report for June 2014 was positive overall, the report did show that while 2.15 million people gained employment, 2.35 million dropped out of the labor force. In all but two months since December 2008, more people left the labor force than found jobs. This will be important to monitor as we measure the strength of the labor markets moving forward.
In Housing News, CoreLogic released their National Foreclosure Report for May 2014 which showed a 37% drop in the number of completed foreclosures from the previous year. The number of completed foreclosures dropped from 52,000 to 47,000 for May 2014. This shows why home price appreciation is so important, it solves most of the delinquency problems because people can sell or it is worth it for them to keep their mortgage current.
The next Delaware First Time Home Buyer Seminar is Saturday, July 19, 2014, n Newark, Delaware, and the next Dover Delaware First Time Home Buyer Seminar is August 16, 2014. Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com
Then next Maryland First Time Home Buyer Seminar is Saturday, July 26, 2014, in Towson, Maryland and Frederick Maryland First Time Home Buyer Seminar on August 9, 2014, in Frederick, Maryland and Clinton Maryland First Time Home Buyer Seminar on July 19, 2014. 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