Delaware Mortgage Rates Weekly Mortgage Market Update September 30, 2013
Delaware Mortgage Rates weekly market update for the Week of September 30, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John Thomas 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 continued to improve this week as a government shut looms over the Federal Debt Limit. If you look at the mortgage bond chart below you can see mortgage bonds have had a big rally higher since hitting the all-time low for the year at the beginning of September. Mortgage bonds have rallied higher on the Federal Reserve continuing their asset purchase program QE3 with no tapering and the fight going on in US Congress over raising the debt limit. The uncertainty has helped boost mortgage bonds and has moved home loan rates considerably lower. We are recommending FLOATING your Delaware mortgage rate to start the week as the short term trend is for bonds to move higher and home loan rates to move lower.
In Economic News:
Second Quarter Final GDP came in at 2.5% which was below the estimated 2.7%. The GDP reading is showing very moderate growth for the 2nd quarter and the outlook for the second half of the year doesn’t look good either.
Inflation remained tame as Personal Consumption and Expenditures (PCE) year over year for August 2013 came in at 1.2% which is well below the Federal Reserve’s target of 2%. The Consumer Price Index (CPI) for August 2013 dropped to 1.5% from 2.0% in July 2013. Inflation remaining below 2% allows the Federal Reserve to continue their Bond Buying Program which will help to keep mortgage interest rates low.
Consumer Confidence dropped to 79.7 which is the lowest reading since May 2013 and Consumer Sentiment dropped to 77.5 for September 213 from 82.1 in August 2013. These reports show the consumer is not feeling as good about the economy.
Weekly Initial Jobless Claims came out on Thursday at 305,000 claims which were down 5,000 claims from the previous week. The numbers for weekly claims keep getting better which could lead to a better than expected Jobs Report for October. A better than expected jobs report could mean rates move higher in the short term so need to beÂ prepared to lock your rate ahead of the October Jobs Report.
In Housing News:
The Case-Schiller 20 City Home Price Index rose 12.4% from July 2012 to July 2013 and showed a 1.8% increase from June to July. Pending Home Sales for August 2013, which measures signed contracts to purchase existing homes during that month, were down 1.6%. New Home Sales were up 8% in August 2013 up to 421,000 units annualized. New Home Sales is a measure of the number of new construction homes that bought in that month.
FHAÂ Update – HUD postpones the rule against the dual agency on short sales after a successful lobbying campaign by NAR. The rule was to go into effect October 1, 2013, which banned brokers and agents from working both sides of the sale on a short sale when the loan was an FHA loan that was being sold short. Read the full story at HUD Delays Ban on Short Sales
Call 302-703-0727 to schedule a 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 home owners 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 Delaware First Time Home Buyer Seminar is Saturday, October 12, 2013, in Newark, Delaware and Free First Time Home Buyer Seminar on Saturday, October 19, 2013, in Dover, Delaware. Register by calling 302-703-0727 or Register online at http://www.delawarehomebuyerseminar.com/
Then next Maryland First Time Home Buyer Seminar is Saturday, October 19, 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