Delaware mortgage rate weekly mortgage market update for the week of March 4, 2013, by John 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 stop moving higher and improve slightly to end the week last Friday. If you look at the chart you can see mortgage bonds had a big rally on Monday to start the week with the big green candlestick. This rally was fueled by a big drop in the stock market. Mortgage bonds were able to continue an upward trend for the rest of the week which helped home loan rates improve. We are recommending LOCKING your Delaware mortgage rate to start the week as mortgage bonds have been capped at the 200-day moving average and if fail to break above it could sell off again and rates could move higher.

The big news last week was the “Sequester” which is 85 billion of automatic spending cuts that went into effect on March 1, 2013, as Congress couldn’t pass an alternate solution. The spending cuts are part of a program to reduce the National Deficit. There will be no doomsday effect on people as the March 1st date passes. The effects will be spread across government programs and it will take time before any noticeable effects are seen.  Congress trying to use scare tactics about the Sequester just doesn’t make sense and neither do the numbers they are using. For example, Congresswoman Maxine Waters stated if Sequester goes through 170 million people will lose their jobs. Problem with this statistic is that only $150 million works in the united states so everybody with a job would lose their job plus 40 million jobs that don’t even exist. Doesn’t give us much faith that Congress will find a solution to the problem with statements like these.

Last week we saw the GDP for the fourth quarter of 2012 come in at 0.1% which is very low when compared to the last 3 years of GDP. This shows the economy is not growing as well as expected and this put a damper on the stock market.

There was more good news on the housing front as the Case Shiller 20-City Home Price Index showed that home prices improved year-over-year at 6.8% and from November to December increased by 0.2%. In addition, New Home Sales showed a strong rise in January, while Consumer Confidence for February improved steadily, both beating consensuses estimates. Initial jobless claims for last week came in at 344,000 which was 20,000 less than expected at 360,000 so this was good news.

The next Free Delaware First Time Home Buyer Seminar is Saturday March 16, 2013, in Newark, Delaware, and Tuesday, March 19, 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, March 23, 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