Delaware mortgage rates weekly mortgage market update for the week of December 24, 2012, from John R. Thomas with Primary Residential Mortgage in Newark, DE. Call 302-703-0727 to get a free mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan. John Thomas is the Newark, Delaware Branch Manager and the author of the book, Your Guide to Buying Your First Home in Delaware. He provides a weekly mortgage rate market update to keep you current with what is happening with mortgage rates and the economy as a whole.

Delaware mortgage rates were able to move lower after a two-week run-up in mortgage rates. The mortgage bonds were able to bounce off support as “The Fiscal Cliff” talks in Washington have stalled and no clear sign that a deal will be reached before December 31, 2012. If Congress fails to act and pass a bill to deal with the Fiscal Cliff then tax rates will increase for everybody for 2013. The Healthcare Law also imposes additional taxes in 2013 and mandatory budget cuts go into effect from a deal reach in 2011 to deal with raising the debt ceiling. The Congressional Budget Office estimates this will remove about $600 billion from the economy which will put the U.S. back into a recession.

The Fiscal Cliff is helping mortgage bonds as the uncertainty has investors putting money into the bond market. This has helped Delaware home loan rates finally move lower again. We are recommending LOCKING your Delaware mortgage rate to take advantage of record-low rates. Be warned that if the deal reached on Fiscal Cliff mortgage rates will move higher as the move will be pulled out of the bond market into a stock market rally.

We saw the GDP for the third quarter of 2012 revised upward to 3.1% which was higher than the 2.7% from the second quarter of 2012. The increase in GDP was most likely from the increase in inventory not from supply/demand so fourth quarter GDP will give better read on the economy.

Initial Jobless Claims for last week came in at 361,000 which was higher than expected and higher than the previous week at 344,000. This again shows the economy struggling and we could see the unemployment rate start to pick up if the number stays high.

Existing home sales jumped 5.9% to 5.04 Million annually which is the highest number since November 2009 and if you take the tax credit out for 2009 then it is the highest number since July 2007. National Median Home prices are up 10.1% year over year which is the 9th consecutive monthly year over year gain. The housing inventory fell to a 4.8 month supply nationally and is the lowest since September 2005. We also saw Building Permits rise by 3.5% to 899,000 which was above expectations of 877,000.  Building permits are a sign that builders are having confidence in the housing market for 2013.

If you ever wondered how much you are allowed to ask for in seller paid closing costs then you will want to read this article, it breaks it all down per loan type and down payment: https://www.delawaremortgageloans.net/delaware-mortgage-loans/allowed-seller-contribution-toward-closing-costs-on-delaware-purchase-transactions/

I am recommending LOCKING  your Delaware Mortgage Rate if you are closing in the next 30 days to take advantage of the rebound lower in mortgage rates. 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, January 19, 2012, in Newark, Delaware and Tuesday, December 18, 2012, 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, January 12, 2012, 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