Delaware Mortgage Rates Weekly Update for June 23, 2014
Delaware Mortgage Rates weekly update for the Week of June 23, 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 ended the week right where they started after bonds traded in a tight range. If you look at the mortgage bond chart below you can see mortgage bonds have been trapped in a tight trading range. Mortgage bonds ended the week at the top of the trading range and could be looking to break out higher so we are recommending FLOATING your Delaware Mortgage Rate to start the week.
The Federal Reserve met on Wednesday and announced that they would taper their asset purchase program QE3 by another $10 Billion in July 2014 from $45 Billion a month to $35 Billion a month of mortgage bonds and U.S. Treasuries. The Feds also said they would keep the Feds Fund Rate unchanged at 0%.
The Consumer Price Index (CPI) was reported higher than expected last week at 0.4% which means inflation is heating up. The year over year increased to 2.1% which is in the Fed’s target range of 2% to 2.5% for inflation. We will need to closely watch inflation and make sure it doesn’t keep moving higher as this would be bad news for mortgage bonds and could move interest rates higher.
Thursday the Weekly Initial Jobless Claims came in at 312,000 claims which are down 6k claims from the previous week. Weekly claims are hovering in the low 300s which shows the labor market is steady.
In Housing News, the Hot Housing Market of 2013 is cooling off as we move into 2014. Housing Starts for May 2014 dropped by 6.5% from April to May to an annual rate of 1.001 Million Units. Housing Starts to measure the numb of new residential homes that construction was started on in that month. We also saw Building Permits for May 2014 fall by 6.4% to an annual rate of 994,000 units. Building Permits is the number of permits home builders applied for in that particular month which is a sign of future construction.
There was some positive news in the Housing Market, the Home Builder Housing Market Index moved up to 49 for June 2014 from 45 for May. This is only 1 point shy of the 50 which is a considered a good for new home construction.
The next Delaware First Time Home Buyer Seminar is Saturday, July 19, 2014, in Newark, 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, June 28, 2014, 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