Delaware mortgage rate weekly mortgage market update for the week of September 17, 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 dropped to all-time historic lows last week on Thursday, September 13, 2012, when the Federal Reserve Chairman Ben Bernanke announced that the Feds would be instituting QE3 and would be buying mortgage bonds to the tune of 40 Billion a month. The Feds are looking to spur the economy by keeping interest rates low. The Feds will keep the bond-buying program in effect until inflation creeps up or the economy turns the corner.

August Consumer inflation came in tame which helped the Feds to make their decision to implement QE3. The Producer Price Index measures inflation at the wholesale level and it came in pretty high at 1.7% for August 2012. The rise in wholesale inflation was because of high fuel costs and high food costs.

Many lenders have increased conventional mortgage rates on 60 day or longer rate locks already because of the increase in guarantee fee that goes into effect for loans delivered after November 1, 2012. If you locked your rate already and end up needing an extension you will see a 50 basis point fee adjustment in addition to any regular rate lock extension fee.

Fannie Mae Announced it is streamlining income verification on its DU Refi Plus refinance program. Fannie Mae is now allowing verification of assets in lieu of verification of income on its DU Refi Plus Program. Payment increase must be less than 20% and you must be able to document 12 month reserve of PITI payment. So a “Stated Income” Program for DU Refi Plus.  You can get more information here https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2012/sel1209.pdf

In national news, our Budget Deficit continues to grow and this is unsustainable as can be seen with what has happened to countries in Europe that have done the same thing we are doing now, borrowing more than we can pay back. If Congress fails to act there are mandatory cuts and tax increases that go into effect to contain the budget in 2013 that will surely drive the country back into recession. This would be bad in the short term as unemployment would rise but long term this would be very good for the economy as it would reduce the debt and put the country back on sound financial footing.  You can get more information on the fiscal cliff in 2013 at http://money.cnn.com/2012/08/22/news/economy/fiscal-cliff/index.html

If you want your congressmen to take action on the budget deficit you can sign the “Citizen’s Petition To Fix The Debt” The petition can be found at www.fixthedebt.org

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, September 22, 2012, in Newark, Delaware and Tuesday, September 25, 2012, in Dover, Delaware. Register by calling 302-703-0727 or Register online at http://www.delawarehomebuyerseminar.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