Delaware mortgage rate weekly mortgage market update for the week of December 3, 2012, by John R. Thomas with Primary Residential Mortgage in Newark, DE. John is the Newark, Delaware 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 have moved lower last week as no deal has been reached on the Financial “Fiscal Cliff” by the US Congress. The Fiscal Cliff is a series of events that will happen in 2013 if no action is taken by Congress. Here is a list of the events:

• Individual and Business Tax Cuts Expire so Tax Rates will go up for everybody!
• Increased Taxes for Health Care Law will begin in 2013
• Long Term Jobless Benefits will expire
• Mandatory Spending Cuts to many programs go into effect from Law passed in 2011 by Congress to raise the debt ceiling

The Congressional Budget Office said if nothing is done and the US is allowed to go over the Fiscal Cliff then an estimated 600 Billion dollars will be removed from the economy forcing the country into another recession.

One of the fixes to the Fiscal Cliff being debated by Congress is a change to the mortgage interest tax deduction. There is a lot of concern about this deduction being taken away or changed as it can make owning a house more expensive.

There is also much uncertainty about what can be done to resolve the debt crisis in Europe so this is also helping mortgage rates stay low in the US as the world economy is playing the safe investment by investing in the US bond market.

We also saw that the Core Personal Consumption Expenditure came in low which is a measure of inflation. Low inflation is good news for bonds and home loan rates. If inflation heats up we could see interest rates move up in response. Year over year inflation dropped to 1.6% from 1.7% a year ago.

In the Housing News, New Home Sales for October 2012 was released last week and it came in slightly lower than expected and was lower than last month. This may seem negativity but traditionally October and November are lower numbers. The drop was only 0.3% and we are still up year over year sales by 17.2%. Housing is in recovery but still has a long way to go.

Also on the Housing News Front, the Case Shiller Home Index increased by 3%. The Index is a measure of the home prices in a 20 city survey so this shows home prices on average are increasing which is good news for a housing recovery.

The Federal Housing Finance Agency has announced that conforming loan limits for Delaware for 2013 will remain the same as they were in 2012.  The maximum financing allowed for a 1 unit property is $417,000 for New Castle, Kent, and Sussex County, Delaware.

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, December 15, 2012, in Newark, Delaware and Tuesday, December 18, 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, January 12, 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