Delaware Mortgage Rates weekly mortgage market update for the Week of August 25, 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 moved higher to start the week but then rallied back to end the week near 12 month lows. Last week we had a rash of better than expected economic reports that started a sell off in mortgage bonds as you can see from the mortgage bond chart below but bonds were able to show some resilience and rebound higher to end the week about where they started. We are recommending FLOATING your Delaware Mortgage Rate to start the week as bonds are showing a short term trend of moving higher which may move interest rates lower.
In Economic News, inflation had been trending higher in the beginning of the year but has reversed course and has started trending lower. Last week we saw the release of the Consumer Price Index (CPI) which was up 0.1% from June to July 2014 and dropped on year over year from 2.1% to 2.0%. The CPI measures inflation at the consumer level. Low inflation is good for mortgage bonds as it gives the Feds reason to keep short term interests low for an extended period of time.
Weekly Initial Jobless Claims came out better than expected falling 14,000 claims to 298,000 claims for the week. Jobless claims continue to hover around the 300k claims mark which is a good sign for the labor market. The monthly jobs report for August will be released this Friday and the report will use this jobless claims number of 293k which predicts a jobs report of over 200,000 jobs created for August 2014.
In Housing News, Housing Starts and Building Permits for July were reported much better than expected and gave a boost to New Home Construction. Housing Starts for July 2014 surged higher by 15.7% to 1.093 Million Units. Building Permits for July 2014 also jumped higher by 8.1% to 1.052 Million Units. This data corresponds very well to the National Association of Home Builders (NAHB) Housing Market Index for August 2014 which was much better than expected at 55. This was the third monthly gain in a row on the Housing Market Index and the best reading since January.
Another Good Report on Housing last week was Existing Home Sales for July 2014 showed existing homes sales up 2.4% to 5.15 Million units which is the best number in 10 months. The Median Existing Home Sale Price for July was $222,900 which is up 4.9% year over year.
The next Delaware First Time Home Buyer Seminar is Saturday September 20, 2014 in Newark, 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 August 30, 2014 in Towson, Maryland and Frederick Maryland First Time Home Buyer Seminar on September 13, 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