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Delaware Mortgage Rates Weekly Market Update for June 30, 2014

John Thomas June 29, 2014 Tags: , , , , ,

Delaware Mortgage Rates weekly update for the Week of June 30, 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 reached the lowest level in over a year last week as the stock market experienced a decline. If you look at the mortgage bond chart below you can see the trend is for mortgage bonds to rise which moves interest rates lower. The bonds have stalled at a high point and the technicals point to a short term sell off so we are recommending LOCKING your Delaware Mortgage Rate to start the week.

Mortgage Bond Chart 06-27-2014
What is the long term outlook for stocks and mortgage rates?  Mortgage rates typically benefit from a stock market that is selling off as the money usually moves into the bond market. So a sell-off in the stock market could help improve mortgage rates. If you look at the chart below you can see Durable Goods Orders compared to the S&P 500 Stock Market Index. The chart shows that Durable Goods Orders are a leading indicator of the stock market which means they will lead the market in the same direction. This has happened every time except 2007 when we had the financial crisis. The chart shows Durable Goods Orders have been moving sideways as the stock market has rallied on the Feds QE asset purchase program. The asset purchase program is ending this year and that should cause the stock market to sell off and become inline with Durable Goods. This means you might want to consider reviewing your stock investments for a correction and this would also be good news for mortgage bonds in the short term.


In Economic News, the final reading for Gross Domestic Product (GDP) for the first quarter of 2014 came out and was much worse than expected at -2.9%. This was the worst reading since the first quarter of 2009 which was the height of the Great Recession and this comes after 6 years and $4 Trillion in stimulus money from the Federal Government. The GDP report showed consumer spending fell to 1% versus 3% and some of the declines are being blamed on the harsh winter weather so we will have to see if the GDP rebounds in the second quarter.

GDP Q1 2014 Final ReadingWeekly Initial Jobless Claims came at on Thursday at 313,000 claims which are a drop of 2k claims. Weekly initial claims have been consistently holding in the low 300k claims. The weekly initial claims being in the 300k shows more slack in the labor market that is indicated by a 6.3% unemployment rate. The unemployment rate doesn’t count people that have stopped looking for work or have taken part-time work but want full-time work.

Weekly initial jobless claims 06-26-2014We saw another reading on inflation last week from the Personal Consumption Expenditure (PCE) which is the Feds favorite measure of inflation. The PCE was up 0.2% month over month and was up 1.5% year over year for the core PCE which was an increase from 1.4%. Inflation reports continue to show inflation slowly heating up which if it continues could be bad news for mortgage rates so we will continue to monitor inflation.

In Housing News, New Home Sales for May 2014 surged well above expectations at 18.6% to 504,000 units. This is a measure of how many new homes builders have sold in the month of May. Existing Home Sales for May 2014 was also up 4.9% from April to 4.89 Million Units. Rents are rising very fast, NAR reported rents were up 4% which may bode well for the housing market as rising rents will move renters off the fence into buying a home.

Existing Home Sales May 2014

The next Delaware First Time Home Buyer Seminar is Saturday, July 19, 2014, in 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, July 19, 2014, in Towson, Maryland and Frederick Maryland First Time Home Buyer Seminar on July 12, 2014, in Frederick, 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

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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