Delaware Mortgage Rates Weekly Update for October 6, 2014
Delaware Mortgage Rates weekly mortgage market update for the Week of October 6, 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 about where they started but the trend has become bearish. If you look at the mortgage bond chart below you can see Mortgage Bonds sold off on Friday after the September Jobs Report was released on Friday and the Stock Market rallied. Recommend LOCKING your Delaware Mortgage Rate to start the week as the short term risk for mortgage rates to sell off and move interest rates higher.
In Economic News, the September 2014 Jobs Report was released on Friday and showed 248,000 jobs created above the 210,000 expected. The unemployment rate dropped surprisingly to 5.9% well below expectations of 6.1%. This was the lowest rate in over 6 years. The report looked to be a great jobs report and the stock market rallied.
But if you dig into the report, hourly earnings came in unchanged which means there is no wage growth. Without wage growth, it will be very hard for the economy to grow any faster. We also saw the Labor Force Participation Rate (LFPR) drop to 62.7 which is the lowest reading since 1978. The LFPR measures the number of people eligible to work that is actually working so if this is dropping and the unemployment rate is dropping, then the unemployment rate is dropping because people are dropping out of the workforce versus putting more people back to work.
Weekly Initial Jobless Claims were released on Thursday and came in better than expected at 287,000 claims versus the 297,000 claims expected and a drop of 8k from last week’s 295,000 claims. The Labor Market Recovery continues to be bumpy but overall this was a positive report for the Labor Market.
In Housing News, CoreLogic reported that completed foreclosures dropped 22 percent year over year from August 2013 to August 2014. The nationwide foreclosure inventory fell by nearly 33 percent from a year ago, the number of homes in some stage of foreclosure dropped from 936,000 in August 2013 to only 629,000 in August 2014.
CoreLogic stated that at the current rate of foreclosure rates, the shadow inventory of bank-owned homes could fall below 500,000 units by the end of 2014 which would provide a solid boost to recovery in housing for 2015.
The Case Shiller 20 City Home Price Index showed the appreciation is slowing with only a 6.7% increase from July 2013 to July 2014. This is down from 8.1% increase year over year from June 2013 to June 2014. Home price appreciation is dropping into a range that can be more sustainable over the long term.
The next Delaware First Time Home Buyer Seminar is Saturday, October 18, 2014, in Newark, Delaware or Dover Delaware First Time Home Buyer Seminar Saturday, October 11, 2014, 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, October 18, 2014, in Towson, Maryland and Frederick Maryland First Time Home Buyer Seminar on October 11, 2014, in Frederick, Maryland and Laurel Maryland First Time Home Buyer Seminar on October 8, 2014. 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