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Delaware Mortgage Rates Weekly Update for September 9, 2013

John Thomas September 8, 2013 Tags: , , , , , ,

Delaware Mortgage Rates weekly market update for the week of September 9, 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 mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware mortgage rates hit a 2-year high last week as mortgage bonds sold off in response to good economic reports and anticipation of better than expected jobs report. If you look at the mortgage bond chart below for the last 6-month view, you can see mortgage bonds have been trending lower since May 2013 and have been setting new record lows. This has been the long term trend for mortgage rates since May and the trend will continue as you can see there is nothing in the chart to indicate that mortgage bonds can mount a rally that would alter the trend. The second mortgage bond chart below is last 30-day view of bonds which shows in more detail how the bond has sold off starting on Monday and hit another 2 year low on Thursday. This moved Delaware home loan rates to a 2 year high. Friday we did see a recovery and a bounce higher after the August Jobs Report came out worse than expected. We are recommending LOCKING your Delaware mortgage rate if closing in the next 2 weeks as the market will be extremely volatile but if closing in 30 days or more then you can FLOAT to see if mortgage bonds can bounce higher from this level.

mortgage bond chart 09-08-2013 6 month chart

Mortgage Bond Chart for Past Month of August 2013

mortgage bond chart 09-08-2013

In Economic News, The U.S. Labor Department released the August 2013 Jobs Report on Friday morning which showed that employers added 169,000 jobs in August 2013, below the 177,000 jobs expected. In addition, the Labor Force Participation Rate (LFPR) fell to the lowest level in 35 years to 63.2%. The LFPR measures the number of people who are either employed or are actively looking for work. This was not good news for the labor market.

Within the jobs report, the Unemployment Rate fell from 7.4% to its lowest level (7.3%) since December of 2008 and it due to people dropping out of the workforce versus people finding jobs. For June and July, revisions were a total of -74,000 jobs bringing June 2013 to 172,000 jobs from 188,000 jobs and July 2013 to 104,000 jobs from 162,000 jobs. In the private sector, employers added 152,000 jobs, below the 180,000 jobs expected.

Jobs Report August 2013

The weaker than expected jobs report and the revisions lower will be closely scrutinized by members of the U.S. Federal Reserve for any decision on tapering the current Bond purchase program. The program is designed to promote economic and job growth. To do this, the Federal Reserve is purchasing $85 billion per month in Bonds in an effort to stimulate lending, which in turn would spur on spending.

Thursday we saw the release of the Weekly Initial Jobless Claims which fell by 9,000 claims to 323,000 claims. People filing for continuing claims was at 2.96 million people filing for unemployment insurance. The drop in claims help fuel the big sell-off in mortgage bonds on Thursday.

initial jobless claims september 5 2013

In Housing News, CoreLogic reported that it’s Home Price Index for July 2013 showed a year over year increase of 12.4% and rose 1.8% from June 2013 to July 2013. Home Prices still remain 17.6% below the peak in 2006 so home prices still have room to the upside. Â CoreLogic is expecting a 12.3 year over year increase for August 2013.

home_Prices_July_2013

Fannie Mae Update – Fannie Mae announced new rules for conventional loans effective January 2014. The 97% LTV loan is no longer eligible, the maximum LTV on conventional Fannie Mae loans will be 95%. Read the whole update at Fannie Mae Rule Update January 2014

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.e – Fannie Mae Released new rules for Conventional Loans effective January 2014. No More 97% LTV Loans!! Max will be 95% LTV. Read the full update at Fannie Mae Update January 2014

The next Delaware First Time Home Buyer Seminar is Saturday, September 14, 2013, in Newark, Delaware and First Time Home Buyer Seminar on Saturday, September 28, 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, September 14, 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

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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