Delaware mortgage rate weekly update for the week of November 26, 2012, by John R. Thomas with Primary Residential Mortgage in Newark, DE. John is the Newark, Delaware 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 drifted higher last week as the stock market rallied. Mortgage bonds have traded in a range for the past two weeks.  We are recommending LOCKING your Delaware mortgage rate if closing in the next 15-30 days but recommend floating longer term as rates could improve by bouncing off support. Short term risk is for rates to move higher as bonds are trading below the 50 days moving average and could fall lower.  The long term outlook for mortgage rates is for staying low as the economic factors are still negative.

The initial jobless claims are still coming in high as a result of Hurricane Sandy. The initial jobless claims last week came in at 410,000 and the week before the report was revised higher from 439,000 to 451,000.

The EuroDrama is getting worse as Germany has no interest in throwing any more money at a Greece bailout. Spain and Italy are getting worse as their economies continue to worsen as austerity measures are set in to pay down the national debt. France has finally realized electing the socialist president has actually made things worse as his approval rating is at an all-time low. France lowered retirement age and increased tax on millionaires to 75%, all these measures sound great to the people but doesn’t work so well in the real world has someone has to foot the bill and France is already laden with debt. All of this will strengthen the US dollar which is good for the bond market.

Inflation is the enemy of mortgage bonds. The reading on inflation is important to watch because if inflation kicks in mortgage rates could move higher and fast. The October 2012 reading on the Core CPI shows 2% which shows inflation remains tame. This is good news for mortgage rates.

HUD announced it would be increasing the monthly mortgage insurance charged on FHA loans in January 2013 by 0.1% to 1.35%. This will again make FHA loans more expensive and since this is the loan of choice for low to moderate income families, this is an increase in housing costs for the ones who most need assistance. FHA is also considering making the monthly mortgage insurance stay on for the life of the loan instead of dropping off at 78%. These changes are in response to the FHA insurance fund projecting 1 Trillion in losses from loans written between 2007 and 2009.

I am recommending LOCKING in your Delaware Mortgage Rate if you are closing in the next 30 days to take advantage of the lowest rates ever in history! 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, December 15, 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

www.PrimaryResidentialMortgage.info