Mortgage Rate Update August 29 2016

Mortgage  Rate weekly update for the Week of August 28, 2016 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Branch Manager, a Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware.  Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rate ended the week lower as the mortgage bonds sold off on Friday after Fed Reserve statement about future of raising short term interest rates.  If you look at the mortgage bond chart below you can see the long red candle on Friday which shows the bond selling off and closing below the 50 day moving average and at the bottom of the sideways channel it has been trading in for the last couple of weeks.  We recommend LOCKING your mortgage rate to start the week as the bond has broken beneath support and will need to rally above the blue line in the chart to have upward momentum to move interest rates lower.

In Economic News, the Gross Domestic Product(GDP) reading for the second quarter of 2016 was released and showed the GDP grew at a rate of 1.1%.  The report showed that corporate profits fell 2.4%.  Growth overall remains anemic.

Weekly Initial Jobless Claims came in at 261,000 claims for the week which was down a 1,000 claims from the previous week.  Weekly initial claims continue to show a strong labor market and point to another very good Jobs Report for August 2016 which will be released on Friday September 2nd.  Another good Jobs Report could give the Federal Reserve ammunition to vote to raise their short term interest rate, the Feds Funds Rate.

In housing News, New Home Sales for July 2016 jumped higher by 12.4 percent on annualized basis to 654,000 sales.  New Home Sales are up 31 percent from July 2015!  The median New Home Sale price was $294,600.

Existing Home Sales for July 2016 were released on Wednesday and showed an unexpected decline by 3.2% to 5.39 Million homes sold on an annualized basis.  But even though this a a drop from June, it was still a good number be cause June was the best month for existing home sales in 9 years!

First Time Home Buyer Seminars Coming Up:

The next Delaware First Time Home Buyer Seminar is Saturday September 17, 2016 in Newark, Delaware.

Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com

Mortgage Interest Rates remain near all time record low rates, so it is the perfect time to purchase or refinance a home before rates move higher.  Call 302-703-0727 for a free mortgage consultation with a licensed mortgage loan officer that can review your options with you.

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