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Delaware Mortgage Rates Weekly Mortgage Market Update for July 15, 2013

John Thomas July 14, 2013 Tags: , , , , ,
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Delaware mortgage rates weekly market update for the week of July 15, 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 free mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware mortgage rates were finally able to move lower after spiking higher the past two weeks. If you look at the mortgage bond chart below you can see that mortgage bonds were able to rebound on Monday after the big sell-off on Friday, July 5th which is the big red candle down on the bond chart below. The big green candle on Monday shows the bond market rebounding and then moved higher the rest of the week. The short term trend is now for mortgage bonds to move higher and rates to move lower so we are recommending FLOATING your Delaware mortgage rate to start the week.

mortgage bond chart 07-15-2013

The Federal Reserve Open Market Committee minutes were released on Wednesday which showed half the Fed members want to see more improvement in the labor market before beginning to taper the bond-buying program and the other half want to start tapering the bond-buying program now. Federal Reserve Chairman Ben Bernanke made comments after the release of the minutes trying to soothe the markets by stating the easy money policies will be around for the foreseeable future. These helped bonds hold the gains for the week.

Unemployment per state for May 2013 was released last week and Delaware’s unemployment rate was at 7.2%. The jobs report for June 2013 did appear to be good but when we dig into the report it wasn’t that good.  Most of the jobs created were low paying jobs and part-time help. If we look at the next generation American workers which are 18-29-year-olds, we see the unemployment rate among that group at a staggering 16.1%!

state unemployment rate for May 2013

In Economic News, we saw the release of the Producer Price Index (PPI) for June 2013 and it came in hotter than expected at 08% versus expectation of 0.3%. PPI is a measure of inflation at the wholesale level so this is significant as higher inflation is bad news for mortgage bonds. The bond market was able to shrug off higher inflation reading as most of it was from higher energy costs such as the price of gasoline.

What is the long term outlook for mortgage rates?

If you look at the bond chart below you can see the long term trend for mortgage bonds is lower which means long term trend for rates is higher.  If prices for the mortgage bonds can close above the blue falling trend line on the chart below then the bond could make a nice move higher and rates could move lower. Bonds could mount a Summer Rally so we are recommending cautiously FLOATING your Delaware Mortgage rate to see if bonds can break above the falling blue trend line.

mortgage_down_trend_July_2013

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, July 20, 2013, in Newark, Delaware and Tuesday, July 27, 2013, 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, July 20, 2013, 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

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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