Delaware Mortgage Rates Weekly Update for July 22, 2013
Delaware mortgage rates weekly market update for the week of July 22, 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 improved again this week as mortgage bonds were able to rally to end the week on comments from Federal Chairman Ben Bernanke who reaffirmed that the Feds easy money policies would continue into 2014. If you look at the mortgage bond chart below you can see mortgage bonds bounced off the 2 years low on July 8th and have continued to rally since setting a short term trend for mortgage bonds to trade higher. When the mortgage bond price moves higher, mortgage interest rates move lower so Delaware mortgage rates have moved lower since hitting 2 years high. On Friday, mortgage bonds were able to close above the 25-day moving average which is a bullish sign for bonds to continue to move higher so we are recommending FLOATING your Delaware mortgage rate to start the week.
Mortgage bonds have been on a long term trend since May 2013 of trading lower and moving interest rates higher. The bond on Friday closed just at the falling trend line which is the blue line in the mortgage bond chart below. Mortgage bonds will need to break through this blue line and close higher in order for home loan interest rates to continue to move lower. If bonds are pushed lower by this blue trend line then we would quickly recommend LOCKING your Delaware mortgage rate because as you can see from the chart every time the bond hit this blue trend line since May and didn’t break through, bonds sold off and mortgage rates jumped higher.
In Economic News, the Consumer Price Index (CPI) rose from May 2013 to June 2013 by 0.5%. The CPI measures the price increase or decrease in the price of goods and services that consumers pay. The CPI rose because of an increase in the price of gasoline, food, clothing, medical costs, and housing. The CPI is a measure of inflation and rising inflation can be bad for mortgage bonds as it would eventually cause home loan interest rates to move higher. The Core Consumer Price Index which takes out the volatile price of gasoline and food prices actually ticked down so that is why Feds said inflation is still not a threat.
In Other Economic News, Retail Sales for June 2013 came in lower at 0.4% which is down from 0.5% in May 2013. Retail Sales make up 30% of Consumer Spending. The latest jobs report showed a lot of part-time jobs and low paying jobs were created. It also showed that wages for most people have not grown at all. Without wage growth and full-time job growth, we won’t see a meaningful increase in Retail Sales which means that the Feds will probably keep the QE bond buying program going longer versus shorter.
Thursday we saw the release of weekly initial jobless claims which came in lower at 334,000 which was below expectations of 336,000 and a drop of 24,000 claims. The improvement in the jobless claims may be attributed to the Summer shut down of factories.
In Housing News, Housing Starts declined by nearly 10 percent from May 2013 to June 2013 dropping to 836,000 starts. This was below expectations and the lowest reading since August 2012. Housing Starts is a measure of the number of new construction properties that builders started construction on for the month. The decline in Housing Starts was attributed to a big drop in apartment building construction. The other measure of new construction is the Building Permits which for June 2013 came in 7.7% lower at 911,000 so that also shows a slowing in future construction.
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