Maryland Mortgage Rates Weekly Market Update for the week of August 5, 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 were on a roller coaster ride last week as mortgage bonds and the market had to absorb a bonanza of economic news. Mortgage interest rates ticked up on Monday and again on Tuesday ahead of the Federal Reserve Statement that was to be released on Wednesday. Wednesday morning mortgage bonds sold off when ADP Payroll came out and reported much better than expect payroll numbers. Maryland mortgage rates spiked higher but then at 2 PM the Feds announced the Bond Buying Program would continue with no immediate tapering this rallied the mortgage bond market and interest rates dropped back down. Thursday the initial jobless claims were released and it was better than expected which made the bond market sell off and mortgage rates surged higher. Friday saw the release of the Jobs Report for July 2013 which was disappointing and mortgage bonds rallied back to end the week almost exactly where they started. We are recommending FLOATING your Maryland mortgage interest rate to start the week to see if mortgage bonds can continue to rally higher and start a Summer Rally.
Jobs Report for July 2013 was released by the Labor Department on Friday and it came out worse than expected at 162,000 versus the 175,00 expected. The mortgage market rallied on the news and mortgage rates moved lowered. The report also showed unemployment ticked down from 7.6% to 7.4% and the Labor Force Participation Rate (LFPR) stayed about the same at 63.4% which is a 30 year low. The LFPR measures how many people 16 years and older not in the military are working. In order for the economy to recovery, we need more jobs to be created.
In Economic News, the Weekly Initial Jobless Claims were released on Thursday and the number of claims dropped unexpectedly by 19,000 claims to 326,000 claims. The bond market sold off on the news in anticipation of a good jobs report on Friday. The Gross Domestic Product (GDP) was released for the 2nd Quarter of 2013 on Wednesday and it came in at 1.7% which was above the expectation of 1.1% but the 1st Quarter of 2013 was revised lower from 1.8% to 1.1%. The GDP of less than 2% is not enough to start a labor market recovery, GDP needs to be closer to 3%.
In Housing News, CoreLogic released the Case/Shiller 20 City Home Price Index for May 2013 and it showed home prices increased by 12.2% from May 2012 to May 2013. Compare this to home prices from May 2011 to May 2012 which was a -0.7% which shows that home prices started to increase at the beginning of the Summer in 2012. If you are considering purchasing a new home, now is the time to do it as home prices are increasing each month and are predicted to increase by about 13% for 2013.
The Next Free Maryland First Time Home Buyer Seminar is Saturday August 17, 2013 in Towson, Maryland. 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. – Baltimore Maryland Mortgage Company
1220A East Joppa Rd Suite 118
Towson, MD 21286
410-412-3319 MD Office