Maryland Mortgage Rates Weekly Market Update for the week of June 3, 2013 from John R. Thomas with Primary Residential Mortgage in Towson, Maryland. John is the author of the book, Your Guide to Purchasing Your First Home in Maryland. Call 410-412-3319 to get a free mortgage planning consultation or APPLY ONLINE for Maryland mortgage loan.
Maryland mortgage rates surged higher last week after bond market sold off on Tuesday. If you look at the mortgage bond chart below you can see the Red Candle that shows the bond selling off over 100 basis points after Central Banks around the world stated they will continue low interest rates and accomodative policies. The stock market rallied on this news and set another all time record high which pulled money out the bond market causing home loan rates to move significantly higher. The bond tried to rally back on Wednesday and Thurday but ended the week lower again as Friday’s Consumer Confidence Report caused the stock market to rally again. We are recommending FLOATING your Maryland mortgage rate to start the week but if mortgage bonds continue to sell off we would quickly switch to a locking stance.
The Consumer Confidence Report for May 2013 came in better than expected at 76.2 and was also at a 5 year high and was a big jump up from April 2013. Consumer Confidence is a meaure of how optimistic or pesimistic consumers feel about the economy.
We also saw a reading on inflation last week from the Personal Consumption Expenditures (PCE) which was reported at 1.1%. This was very tame reading on inflation and was below the Federal Reserves target of 2%. This is good news for mortgage rates as low inflation will allow the Feds to continue QE3 which is 85 Billion a month of bond buying to support low mortgage rates. Thursday also saw the weekly initial jobless claims which came in higher at 354,000 from the previous week. The labor market is still struggling.
The Next Free Maryland First Time Home Buyer Seminar is Saturday June 15, 2013 in Towson, Maryland. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com
John R. Thomas
Senior Loan Officer – NMLS 38783
Primary Residential Mortgage, Inc. – Baltimore Maryland Mortgage Company
1220A East Joppa Rd Suite 118
Towson, MD 21286
410-412-3319 MD Office