Delaware Mortgage Rates Weekly Update for August 5, 2013
Delaware mortgage rates weekly market update for the week of August 5, 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 mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan
Delaware mortgage rates ended the week right about where they started after a wild ride from Monday to Friday. If you look at the mortgage bond chart below you can see mortgage bonds ended the week at 100.81 which was almost where it started the week which was 100.88 which means mortgage interest rates are about the same at the end of the week. But if you look at the in-between days you can see mortgage rates surged higher into Wednesday ahead of the Fed Minutes then rebounded lower at the end of the day on Wednesday then surged higher on Thursday and they rebounded lower on Friday after the July 2013 Jobs Report was released. We are recommending FLOATING your Delaware mortgage rate to start the week to see if bonds can build on the momentum and have a Summer Rally.
The Jobs Report for July 2013 was released on Friday by the Labor Department and the market was expecting the report to beat expectations of 175,000 jobs created for July 2013 but the report came out worse at only 162,000 jobs created. This is in line with a low GDP of only 1.7% that was reported on Wednesday. The bad jobs report also is in line with the Feds stating they will continue the $85 Billion a month of bond buying to hold mortgage interest rates from rising higher. This should keep mortgage interest rates below 5% for the short term and may even cause a rally lower in home loan rates.
The July 2013 Jobs Report also showed unemployment moved down slightly to 7.4% but the Labor Force Participation Rate (LFPR) stayed the same at 63.4%. The LFPR measures how many people 16 years and older that are not in the military and have a job. This shows only 63.4% of eligible workers are working. This is a very low number historically.
In Economic News, the weekly initial jobless claims came in unexpectantly lower by 19,000 claims at 326,000 claims which is the lowest since January 2008. This news is what caused mortgage rates to spike higher on Thursday. Wednesday we saw the Gross Domestic Product (GDP) for Q2 reported at 1.7% which was above the 1.1% expected but still a dismal number. The report also revised the GDP from Q1 downward from 1.8% to 1.1%.
In Housing News, The CoreLogic Case/Shiller 20-City Home Price Index Report showed the largest one year gain since 2006 at 12.2% from May 2012 to May 2013. This again shows that housing is on a strong recovery and is another good reason to not wait to purchase a home as each month home prices are moving up. You can see how much the housing market has changed in the chart below when you compare home prices from May 2011 to May 2012 went down 0.7% and from May 2012 to May 2013 we had a 12.2% increase.
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 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 Delaware First Time Home Buyer Seminar is Saturday, August 17, 2013, in Newark, Delaware and Tuesday, July 27, 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, August 17, 2013, 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