Delaware Mortgage Rates Weekly Update for May 6, 2013
Delaware mortgage rate weekly mortgage market update for the week ofÂ May 6, 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 jumped higher on Friday, May 3, 2013, after a much better than expected April 2013 Jobs Report was released. If you look at the bond chart below you can see that mortgage bonds set another all-time record high on Wednesday, May 1, 2013, which caused mortgage rates to set another all-time record low. Mortgage bonds had been rallying and move rates lower but everything reversed on Friday after the release of the jobs reports. Mortgage bonds are not trending lower again which will cause mortgage rates to move higher. The bond did stop falling when it hit the 200-day moving average so we are recommending cautiously FLOATING your Delaware mortgage rate to start the week but if mortgage bonds fall below the 200 days moving average we will quickly switch to a locking stance.
The Labor Department released the April 2013 Jobs Report on Friday and it moved the markets. The stock market rallied on the news and set another all-time record high for the DOW by breaking 16,000. The report showed that 165,000 jobs were created in April 2013 which was above the expected 155,000 and we also saw March and February Job numbers revised higher by 114,000 jobs. The April Jobs Report also showed that the unemployment rate dropped down from 7.6% to 7.5% which is the lowest since December 2008 and down from a high of 10% in December 2009. All of this positive economic news pulled money out of the bond market and into the stock market sending it to an all-time record high. Thursday we saw the release of the Weekly Initial Jobless Claims Report which showed weekly claims fell by 18,000 to 324,000 which was below expectations of 346,000. This was the lowest weekly initial jobless claims since January 2008.
If we dig into the report the news wasn’t as good as it first looks. Most of the jobs added came from bars and restaurants, retail, and professional service sectors. These jobs are not well-paid jobs that add growth to the economy. The unemployment number dropping to 7.5% wasn’t from more people going back to work but dropped because fewer people are being counted in the unemployment calculation. If we look at the Labor Force Participation Rate (LFPR) it still sits at 63.3 which is the lowest it has been since the 1970s. The LFPR measures the number of eligible workers that are actually working. This shows us we still have lots of people out of work or only working part-time.
In housing news, we saw the Case-Shiller 20 City Home Price Index for February 2013 showed a 9.3% increase in prices from February 2012. This was the largest annual gain since May 2006. This report shows again that the housing market is recovering and home prices across the nation are increasing. The lack of inventory and low mortgage rates are helping to fuel the increase in home prices.
The Federal Reserve Board had its Monthly meeting on Tuesday and stated that it will continue the mortgage bond purchase program throughout the year and into 2014 at the tune of $40 Billion in mortgage bonds and $45 Billion in U.S. Treasuries. The bond-buying program is what is supporting mortgage rates at all-time historic lows so this news means rates should remain low throughout 2013.
I am recommending FLOATING your Delaware Mortgage Rate as mortgage bonds are sitting on a floor of resistance at the 200-day moving average. If bonds sell off and break below the 200 days moving average, we would quickly switch to a locking stance.
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, May 11, 2013, in Newark, Delaware and Tuesday, May 21, 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, May 11, 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