Delaware mortgage rate weekly mortgage market update for the week of October 29, 2012, by John R. Thomas with Primary Residential Mortgage in Newark, DE. John is the Newark 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 able to improve from last week and Friday were able to rebound after good news from the Jobs Report. The trading pattern on Friday showed the mortgage bond bouncing off technical support and ending the day strong which supports a pattern of the bond moving higher. So we are recommending FLOATING your Delaware mortgage rate to see if rates can go lower as the bond rises. Friday saw the October 2012 Jobs Report showing 171,000 jobs created and revised the last two months upward by 84,000. The unemployment rate actually ticked up from 7.8% to 7.9% for October 2012 even though we had an upward revision of jobs. The slight increase in unemployment is because more people started looking for work again.

The jobs report shows that the labor market is improving as can be seen from the Labor Force Participation Rate ticked up slightly from 63.60% o 63.80% which shows more people participating in the economy. Last week we also saw the release of the Core Personal Consumption Expenditure which showed inflation is remaining tame which is good news for mortgage rates.

Last week also saw hurricane Sandy hit the East Coast and caused destruction along the Delaware Coast, the Jersey Shore and along New York.  Sandy has caused havoc on the mortgage process as well in the states of Maryland, Pennsylvania, Delaware, New Jersey, and New York. Most lenders are requiring a disaster re-inspection to be performed on every property that had an appraisal done prior to Hurricane Sandy. The disaster inspection is typically an exterior inspection of a home done by an appraiser that states no damage was done to the property by Hurricane Sandy. This has caused many ends of October closing to be pushed till the first week of November while these inspections are performed.

In National News, the Mortgage Forgiveness Tax Relief Act is set to expire at the end of this year on December 12, 2012. The bill was signed into law in 2007 and expires at the end of 2012 unless a new bill is passed to extend it. This bill allows people that do modifications to their mortgage loan, have a short sale of their home, or that are foreclosed upon to not have to pay income taxes on the portion of the loan that was “forgiven” or defaulted on.  There are several bills in Congress right now to extend this tax relief, S. 2250, H.R. 4336 and H.R. 4202.

I am recommending FLOATING your Delaware Mortgage Rate to see if the bond market can continue to rebound. If the bond rally stalls or start to sell off again, I would recommend locking in your mortgage rate. 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, November 17, 2012, in Newark, Delaware and Tuesday, November 13, 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, November 17, 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