Mortgage Rates Weekly Update [March 5 2018]
Mortgage Rates Weekly Update for March 5, 2018
Mortgage Rates Update for March 5, 2018 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 after sell off in mortgage bonds on Friday to end the week. If you look at the mortgage bond chart below you can see mortgage bonds moved higher during the week but were turned lower at the 25 moving average and sold off after talk of tariffs on steel imports. The long term trend for mortgage bonds is to continue to sell off and move lower which will move mortgage interest rates higher; therefore, we are recommending LOCKING your mortgage rate to start the week.
In Economic News
The headline news on Friday was the Trump Tariffs on imported steel and aluminum which many think will raise prices on items that are made from these commodities such as cars which would be an inflationary event. Mortgage bonds don’t like inflation so they sold off in response moving mortgage interest rates higher.
The second reading of the 4th quarter Gross Domestic Product came in at 2.5%. The fear of rising inflati0n was subdued somewhat as the Core Consumer Personal Expenditures (CPE) remained tame at 1.5%.
Weekly Initial Jobless Claims were released on Thursday and dropped 10,000 claims to 210,000 claims for the week. This was the lowest figure since 1969 and last week’s number was revised lower by 2,000 claims to 220,000 claims. Last week is the sample week and will be used in the February 2018 Jobs Report which will be released this Friday March 9th.
In Housing News
Home Prices Continued to rise as the Case Shiller Home Price Index for December 2017 showed a 6.3% increase in home prices. Home prices moved up 0.6% from November 2017 to December 2017 as the limited inventory of homes for sale continues to put upward price pressure on homes.
New Home Sales for January 2018 were down 8% to 593,000 units on an annualized basis. New home sales measures the number of contracts signed to purchase new homes from home builders. The median home price of a new home was up 2.5% year over year to $325,000.
Pending Home Sales for January 2018 were down 4.7% down to 104.60 on the index. Pending Home sales measure the number of contracts written on existing homes for sale. The main reason for the decline according to NAR is the drop in inventory of homes for sale by 9.5%. The buyer traffic is up but the lack of inventory is hampering home sales.
First Time Home Buyer Seminars Coming Up:.
Delaware First Time Home Buyer Seminar is Saturday March 24, 2018 in Newark, Delaware.
Delaware First Time Home Buyer Seminar is Wednesday March 28, 2018 in Newark, Delaware.
Delaware First Time Home Buyer Seminar is Saturday April 7, 2018 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