Delaware Mortgage Rates Weekly Mortgage Market Update – October 29, 2012
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 stabilized last week and stopped the upward trend. Friday mortgage rates were finally able to rebound and move slightly lower. The mortgage rates were able to rebound after weak earnings were reported by Apple and Amazon which caused the stock market to sell off and shifted money into the bond markets. The Federal Reserve QE3 program was also a boost to the bond market as it is continuing to purchase mortgage bonds.
The Federal Open Market Committee (FOMC) announced at its regular scheduled meeting last week, it would continue its QE3 bond-buying program until the economy has turned around. They are spending 85 billion per month to purchase bonds till the end of the year and they will continue buying 40 Billion of bonds per monthÂ until the labor market substantially improves.
The third quarter initial read on GDP came in at 2% which is above the last quarter reading of 1.3%. This is an improvement but 2% GDP is not enough to move the economy toward recovery. In a good economy, a GDP of 2% flat out stinks, compare this to China’s GDP which is 7.4% which is down from 10% GDP which it has had for three decades. Projections from Kiplinger is that we should see 2% GDP again in the fourth quarter of 2012 but 2013 is not expected to be much better than 2% GDP. This means we will still see a struggling US economy in 2013.
News out of Europe also helped Delaware mortgage rates rebound as this shifted more money into the bond market. Spain’s unemployment rate topped 25% and really show the country is struggling and will default on its debt like Greece. This uncertainty out of Europe will help keep money moving into the US bond market which does help keep mortgage interest rates low.
We did see some good news as New Home Sales for September 2012 increased 5.7% from August to 389,000. New home sales were up 27.1 percent from September 2011. This is great news for Home Builders as shows the market for new construction is returning. The U.S. housing market is showing all signs that it has bottomed and is starting a recovery. Zillow announced that the 3rd quarter of 2012 saw an increase in average home price by 1.3%. This marks the fourth consecutive quarter that home prices have increased. Zillow does warn that we will see sawtooth recovery as some markets will rise then fall and then rise again as the traditional home buying season comes to an end in the winter months. Zillow is projecting a 1.7% rise in home prices in 2013.
Some areas of the market are seeing a shortage of homes for sale. The shortage is coming from sellers that are not putting homes on the market as either not confident in the housing recovery yet or are still underwater on their home so not able to put up for sale. This shortage can be filled by Builders building new homes which explain the uptick in New Home Sales and Building Permits.
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