Delaware Mortgage Rates weekly market update for the Week of July 28, 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 continue on the roller coaster ride of up and down as their is extreme volatility in the bond market. If you look at the mortgage bond chart below you can see the up and down arrows show a roller coaster trading pattern for mortgage bonds which has mortgage interest rates moving up and down about 0.25% over the last 3 weeks. Since we ended the week with a Green Candle on the chart, we are going to recommend FLOATING your Delaware Mortgage Rate to see if bonds can rally off support.
In Economic News, Thursday we the release of Weekly Initial Jobless Claims and it was a very good report for the labor market, jobless claims dropped to an eight year low at 284,000 claims which is a drop of 19,000 from the previous week. Jobless claims are a leading indicator of the jobs market so it will be interesting to see of the July Jobs Report comes out very good. A better than expected Jobs Report would be bad for mortgage rates.
In Inflation News, the Consumer Price Index (CPI) for June 2014 showed that inflation remains tame which is a good sign for mortgage bonds. The Core CPI actually declined from 2% to 1.9%. The Producer Price Index (PPI) for June did show an increase in inflation which measures inflation at the wholesale level so will have to continue to watch the PPI.
In Housing News, Existing Home Sales for June 2014 were up 2.6% to 5.04 Million units. This was the first time in 9 months Existing Homes Sales were above 5 Million units. This was better than expectations.
New Homes Sales for June 2014 unexpectedly Declined by 8.1% from May 2014 to only 406,000 units. This was disappointing as it was well below expectations of 475,000 units but it wasn’t terrible. Just two months ago we are at only 408,000 new home sales.
USDA Rural Housing Loan Update – USDA Guarantee loans are underwritten by banks and once cleared to close by the bank must be submitted to the office of Rural Development for them to underwrite and sign off on the loan. The current turn time for Rural Development to underwrite a loan in the Delaware/Maryland Region is 30 BUSINESS DAYS! What this means to borrowers, Real Estate Agents, and Closing Attorneys is that you will need a minimum of 60 days from contract to close when you are writing an offer on a home in order to close on time. You MUST also make sure you are working with a lender that can underwrite and clear your loan in less than 30 days.
July 18, 2014 the director of Rural Development for the Delaware/Maryland region reiterated that USDA is still at a 30 Business Day Turn Time and to plan accordingly. Lenders are not to contact Rural Development about the status of a loan until the FULL 30 Business Days has started. The start is the day following the day Rural Development receives the loan from the lender. So if you need a lender that understands the process and the urgency, call Primary Residential Mortgage at 302-703-0727 or apply online at www.PRMIDelaware.com
The next Delaware First Time Home Buyer Seminar is Saturday August 23, 2014 in Newark, Delaware and the next Dover Delaware First Time Home Buyer Seminar is August 16, 2014. Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com
Then next Maryland First Time Home Buyer Seminar is Saturday August 30, 2014 in Towson, Maryland and Frederick Maryland First Time Home Buyer Seminar on August 9, 2014 in Frederick, Maryland and Laurel Maryland First Time Home Buyer Seminar on August 20, 2014. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com.
John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage, Inc.
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 DE Office
410-412-3319 MD Office
610-906-3109 PA Office