Delaware Mortgage Rates weekly mortgage market update for the Week of November 4, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John Thomas 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 ended the week slightly worse than they started as mortgage bonds sold off on Friday after better than expected manufacturing news was released. If you look at the mortgage bond chart below you can see that mortgage bonds traded in a tight range and then sold off on Friday closing below the 200 days moving average. We are recommending LOCKING your Delaware Mortgage Rate to start the week as mortgage bonds could continue to sell off after closing below the 200-day moving average.

The ISM Manufacturing Index for October 2013 was released on Friday and came in better than expected at 56.4. This is good economic news and was not very bond friendly as good economic news could lead the Federal Reserve to start tapering the asset purchase program sooner rather than later.

The Federal Open Market Committee released its statement on Wednesday which stated the following:

• Fed Funds Rate would remain at 0.25% until unemployment is around 6.5%
• QE3 asset purchase program would continue at $40 Billion a Month in mortgage bonds and $45 Billion a month in Treasuries

The ADP Payroll Report for October 2013 showed only 130,000 private jobs were created which was below expectations of 150,000 and September’s numbers were revised lower by 21k jobs to 145,000 from 166,000. If you look at the chart below you can see private job creation has been declining over the last couple of months which is not a good sign for the economy.

Consumer Confidence for October 2013 came in lower at 71.2 below the 73.1 expected and well below the 80.2 recorded in September 2013. The drop was due to the government shut down which scorned a lot of consumers.

Inflation came in very tame with the Producer Price Index (PPI) declining 0.1% and the Core PPI remaining the same at 0.1%. Low Inflation will allow the Federal Reserve to keep the asset purchase program going without tapering into 2014.

In Housing News, the Case Shiller 20 City Home Index for August 2013 rose 12.8% year over year and was up 1.3% from July 2013 to August 2013. We do expect to see a slow down in appreciation with the rise in rates and with the government shut down. We saw Pending Home Sales down 5.6% for September 2013 which shows a slow down in home sales. Pending Home Sales is a measure of the number of contracts signed to purchase existing homes for that month.

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, November 16, 2013, 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, November 16, 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