Mortgage Rates Weekly Update [August 28 2017]
Mortgage Rates Update for August 28, 2017
Mortgage Rates Update for August 28, 2017 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware 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 Rates ended the week about where they started as mortgage bonds were stuck trading in a tight channel between resistance and support. If you look at the mortgage bond chart below you can see the blue lines marking the floor of support and resistance that bonds have been trading. The mortgage bonded ended the week right at the ceiling of resistance that has held for several weeks. The Treasuries have broken beneath a tough floor of support at 2.18% and if can fall further, would help mortgage bonds break through a tough ceiling of resistance so we are recommending FLOATING your mortgage rate to start the week.
In Economic News
Durable Goods Orders for July 2017 were released last week and were down 6.8%. Durable Goods measures the number of new orders placed with domestic manufacturers for hard goods. But the decline was due to a steep decline in aircraft orders. When we strip out transportation orders, Durable Goods Orders were actually up 0.5%.
Weekly Initial Jobless Claims were released on Thursday and dropped 3,000 claims from the previous week to 234,000 claims for the week. Jobless claims has been below 250,000 claims for the past 7 weeks and below 300,000 claims for 128 consecutive weeks. The jobless claims point to a strong August Jobs report which will be released on Friday.
In Housing News
New Home Sales for July 2017 fell 9.4 percent to 571,000 units on annualized basis but the report is not bad news as the lack of inventory has kept home sales down. New Construction is having trouble keeping up with the demand because having trouble with finding enough contract labor, find enough land to build on, as well as getting the government permits to build fast enough. The media made it sound like the housing market has slowed but they don’t understand the factors effecting new home construction and also that new home sales represent only 10% of total sales so even a 9.4% drop in New home sales is not puling the whole housing market down.
Existing Home Sales for July 2017 slipped 1.3% to 5.44 million units on an annualized basis BUT are still up 2.1% from July 2016. The total inventory of existing homes for sale decreased 1.0% in July to a 4.2 month supply of homes for sale which is 9.0% below last year’s inventory level which explains why the sale of existing homes is decreasing. The median existing home sale price was up 6.2% from July of 2016 as the low inventory is pushing home prices up. This marked the 65th straight month of year over year gains in Existing Home Sale price.
First Time Home Buyer Seminars Coming Up:
The next Delaware First Time Home Buyer Seminar is Saturday September 23, 2017 in Newark, Delaware.
The next Dover Delaware First Time Home Buyer Seminar is Saturday September 16 , 2017 in Dover, Delaware.
Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com
DE Mortgage Rates remain near all time record low rates but having been moving higher as of late, so it is the perfect time to purchase or refinance a home before interest rates move even higher. Call 302-703-0727 for a free mortgage consultation with a licensed mortgage loan officer that can review your options with you or APPLY ONLINE
Mortgage Rates Weekly Update
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