Delaware mortgage rate weekly mortgage market update for the week of April 8, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John 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 improved last week by dropping lower after the mortgage bond market was able to mount a rally last week from a string of poor economic reports. If you look at the bond chart below you can see mortgage bonds started the week with a rally on Monday, rallied again on Thursday and jumped up the line of resistance on Friday to end the week at almost the best level of the year.

Thursday’s weekly initial jobless claims report surged higher by 28k claims and much higher than expected at 385,000. This hinted at a bad jobs report to follow on Friday. Friday we saw the release of the March 2013 Jobs Report which was expected to show 192,000 jobs created but came in much lower at only 88,000 jobs created which was the lowest number since June of 2012. This fueled a strong bond market rally on Friday. The jobs report showed the unemployment rate drop to the lowest level since December 2008 at 7.6% but this wasn’t really good news because the decline came from people leaving the workforce not going back to work. This can be seen in the Labor Force Participation Rate report which showed 500,000 people left the workforce dropping LFPR to the lowest level since 1979 at 63.3%.

Other bad economic reports last week was the ISM Manufacturing Report came in below expectations. The ADP Private Jobs report came out less than expected and planned job cuts increased by 30 percent from last year. We also have increased tensions with North Korea and the debt problems in Europe making investors very concerned so shifting money to the bond market which also helped the bond market rally. North Korea gave its Army permission to use nuclear weapons on the US and on Friday said it can’t guarantee the safety of foreign diplomats.

In Housing News, CoreLogic released a report that home prices including distressed sales in February 2013 were 10.2% higher than a year ago which was the highest since March 2006. February 2013 was also the 12th consecutive month of home prices rising.

USDA Update – USDA Announced that the implementation of the 2010 census date to determine property eligibility has been pushed back from March 27, 2013, till October 1, 2013. This means all eligible areas will remain eligible until October 1, 2013. So Middletown, DE, Smyrna, DE and Elkton, MD are still eligible for USDA financing with a USDA Rural Housing Loan which lends a 100% of the purchase price.

FHA Update – April 1st saw FHA increase its annual mortgage insurance premium by 0.10 basis points for all FHA case numbers assigned on or after April 1st. The MI becoming for the life of the loan does not begin until June 3, 2013.

Fannie Mae Update – Fannie Mae reported its largest net income in company history for 2012 of $17.2 Billion for the year and net income of $7.6 Billion for the 4th quarter of 2012.

I am recommending FLOATING your Delaware Mortgage Rate to see if mortgage bonds can continue to move higher and move rates lower. 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, April 20, 2013, in Newark, Delaware and Tuesday, April 23, 2013, 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, April 20, 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