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Delaware Mortgage Rates Weekly Mortgage Market Update for August 12, 2013

John Thomas August 11, 2013 Tags: , , , ,
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Delaware mortgage rates weekly market update for the week of August 12, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John is the Newark, Delaware Mortgage Branch Manager and the author of the 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 again ended the week about where they started the week as mortgage bonds have traded in a tight range in the last couple of weeks. If you look at the mortgage bond chart below you can see that mortgage bonds hit their lowest point in over 2 years at the beginning of July, they have since bounced off the lows but now remain trading just below the long term falling trend line we have been talking about. In order for home loan rates to move much lower, the bond needs to break above the falling trend line. We are recommending FLOATING your Delaware mortgage rate to start the week to see if the bond can break above this falling trend line and start a Summer Rally.mortgage bond chart 08-12-2013

In Economic News, the weekly initial jobless claims came out on Thursday and it increased by 5,000 claims to 333,000 claims. The rise in jobless claims last week followed a poor Jobs Report for July 2013 which showed fewer jobs created than expected.

In Housing News, CoreLogic reported its Home Price Index for June 2013 and it showed home prices increased by 11.88% from June 2012 to June 2013.  Compare this to only 3.76% increase in home prices from June 2011 to June 2012.

home price index june 2013

In Political News, Our U.S. Congress is on its yearly August break and won’t be back till September. When they come back they will have to debate raising the debt ceiling again as the deficit will again hit the ceiling. This could cause some bad economic press and could help mortgage bonds in September so stay tuned…

In Local News, Delaware has amended its “Clean Credit and Identity Theft Protection Act.” Under the new provisions a consumer reporting agency may no longer charge consumers for a one-time reissue of the personal identification number; however, charges for any subsequent re-issuance are considered valid. Victims of identity theft, having filed valid incident reports, may not be charged any fee for placing a security freeze on their credit reports. Consumers have the right to bring a civil action against anyone who violates his or her rights under the credit reporting laws.

This week in the News:

  • Economic data kicks off on Tuesday with Retail Sales for July 2013. This comes after a decent reading in June 2013.
  • Inflation data from the wholesale-measuring Producer Price Index and the Consumer Price Index will be released on Wednesday and Thursday, respectively.
  • In the manufacturing sector, the Empire State Index and Philadelphia Fed Index will be released on Thursday along with Weekly Initial Jobless Claims.
  • To round out the week, Housing Starts, Building Permits and Consumer Sentiment will be disseminated on Friday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

Call 302-703-0727 to schedule a 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 Delaware First Time Home Buyer Seminar is Saturday, August 17, 2013, in Newark, Delaware and First Time Home Buyer Seminar on Saturday, August 24, 2013, 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, August 17, 2013, 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

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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