Delaware Mortgage Rates Weekly Rate Update for September 8, 2014
Delaware Mortgage Rates weekly mortgage market update for the Week of September 8, 2014, by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Newark, Delaware Branch Manager and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan
Delaware Mortgage Rates continued to hover around lows for 2014 on last Friday as weakness in the stock market pushed mortgage bonds higher. If you look at the mortgage bond chart below you can see the big green candle on Friday as mortgage bonds rallied and touched the all-time highs for 2014 before retreating lower. We are recommending LOCKING any short term transactions that are closing in days to weeks as the bond was turned lower after hitting the ceiling of resistance so could have a short term pullback which would move interest rates higher.
In Economic News, the Labor Department released the August 2014 Jobs Report on Friday morning and it showed that only 142,000 jobs were created which was much lower than the 223,000 predicted. We also saw a revision to June’s job number lower by 28,000 jobs. The unemployment rate feels from 6.2% to 6.1% but that is because people fell out of being counted versus returning to work so that was not good reading. The Labor Force Participation Rate proves this as it dropped back to 62.8%. The LFPR measures the number of people eligible to work that are 16 years is older that is working so a drop in this along with a drop in unemployment shows people left the workforce calculation for unemployment.
The European Central Bank met last week and lowered its lending rate by 10 basis points from 0.15% to 0.05%. The European Union is facing more financial issues as more countries in Europe are facing recessions and debt issues. The problems in Europe could help boost the U.S. Bond market which would be good news for mortgage rates.
Thursday we saw the release of the Weekly Initial Jobless Claims which came in at 302,000 claims for the week. This was up 4k claims from the previous week above expectations of 300k claims. We will need to watch the weekly claims to see if a trend of higher claims is starting with the bad jobs report for August setting the tone for a possible pullback in the improving labor market.
In Housing News, CoreLogic reported its Home Price Index for July 2014 which was an increase of 7.41% from July 2013. July 2014 marked the 29th consecutive month in a row of home price appreciation year over year. Home Prices were also up 1.2% from June 2014 to July 2014. Even with home prices continuing to appreciate, the market is still 12 percent below the peak in 2006. This means that there is still plenty of upside for someone considering buying a home.
The next Delaware First Time Home Buyer Seminar is Saturday, September 20, 2014, n Newark, Delaware or Dover Delaware First Time Home Buyer Seminar Saturday, October 11, 2014, 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, September 27, 2014, in Towson, Maryland and Frederick Maryland First Time Home Buyer Seminar on September 13, 2014, in Frederick, Maryland and Laurel Maryland First Time Home Buyer Seminar on August 20, 2014. 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