Maryland Mortgage Rates Weekly Market Update for the week of August 19, 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 moved higher last week after a slew of positive economic reports were released. If you look at the mortgage bond chart below you can see the bond sold off everyday last week which caused home loan rates to move up all week. Bonds were able to bounce off the low on Friday so we are recommending FLOATING your Maryland mortgage rate to start the week but be on guard because if bonds break below support then rates could jump higher again.
In Economic News, Thursday saw the release of the weekly Initial Jobless Claims which dropped by 15,000 to 320,000 claims which was also below expectations of 339,000 claims. This was the lowest reading for weekly jobless claims since October 2007. This showed the labor market is improving and could signal the Federal Reserve to start tapering bond buying at September 2013 meeting if continued good news on labor market.
In Economic News, Retail Sales Report for July 2013 showed a fourth consecutive month of improvement in sales. Retail Sales grew by 0.2% for July 2013 and if you strip out auto sales then retail sales grew by 0.5%. This report was more positive economic news which moved mortgage bonds lower last week and interest moved higher.
In Economic News, The Consumer Price Index (CPI) for July 2013 showed inflation year over year was at 2% and was 0.2% for the month of July. The Core CPI showed inflation at 0.2% for July but was only 1.7% year over year. The Core CPI is the report the Feds watch closely for a read on inflation. Their target mark for inflation is 2% so the 1.7% reading is below the Feds target for inflation which is good news for mortgage bonds.
In Housing News, Housing Starts for July 2013 was released last week and showed a 5.9% increase from June to July 2013 and brings the number of housing starts year over year to 889,000 units. Housing Starts is a measure of how many new homes builders have started construction on for the the month. We also saw the release of Building Permits for July 2013 which increase by 2.7% to 934,000 units which was up from 6.7% decline in June 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