Delaware Mortgage Rates Weekly Market Update for November 24, 2014
Delaware Mortgage Rates weekly mortgage market update for the Week of November 24, 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 move slightly lower last week as mortgage bonds bounced off the level of support. If you look at the mortgage bond chart below you can see mortgage bonds are now trading higher in the short term but are being capped by a ceiling of resistance which is the blue horizontal line on the chart. The rise in stock prices has capped the mortgage bond market. We are recommending FLOATING your Delaware Mortgage Rate to start the week to see if bonds can gain momentum to break thru the ceiling of resistance. If bonds hit the ceiling and are turned lower, we will switch to a locking stance.
In Economic News, we had a reading on inflation at the consumer level from the Consumer Price Index (CPI) which came out still very tame on both the headline CPI which remained the same at 1.7% year over year and the Core CPI which was up to 1.8%. This week we will see the Fed’s favorite measure of inflation which is the Personal Consumption Expenditure (PCE) which comes out on November 26th.
Thursday we saw the release of the Weekly Initial Jobless Claims which came out at 291,000 claims which were higher than the 284,000 expected but still below the 300,000 which is where they need to be below in order to keep the labor market on track for a recovery. Last weeks claims are also the week that will be used in the November 2014 Jobs Report from the Labor Department so this would predict over 200,000 jobs created in November.
In other Economic News, The European Union’s Central Bank President Mario Draghi announced that the bank would be instituting an asset purchase program that would buy 1 Trillion Euros of asset-backed securities. This is pretty much the same as the U.S. Federal Reserve had been doing with its asset purchase program QE3 that just ended. This helped European and US stocks to jump higher on Friday.
In Housing News, Existing Home Sales for October 2014 rose by 1.5% from September to 5.26 Million Units on an annualized basis which is the best level since September 2013. The median existing-home price for October 2014 was $208,300 up 5.5% from October 2013.
There were several reports on New Home Construction, the first was the NAHB Housing Market Index for November 2014 increased to 58 which is the highest level of the year and shows home builders are feeling very good about the new home construction market. The NAHB Housing Market Index gauges builder perceptions of current single-family home sales and readings over 50 are seen as positive.
There was a second good report on new construction, Building Permits for October 2014 rose by 4.8% to 1.080 Million units on an annualized basis. This was the highest number of Building Permits since November 2013. But Housing Starts for October 2014 fell by 2.8% from September to 1.008 Million Units on an annualized basis. But in the report, it was multi-family starts that were dragging the report as Single-Family Housing Starts were actually up 4.2%.
The next Delaware First Time Home Buyer Seminar is Saturday, December 13, 2014, n Newark, Delaware. There is a Dover Delaware First Time Home Buyer Seminar Saturday, December 6, 2014, in Dover, 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, December 20, 2014, in Towson, 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