Maryland Mortgage Rates Weekly Mortgage Market Update for the week of March 4, 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 lower last week after the stock market sold off on Monday. The bond chart below shows big green candlestick on monday which shows bond prices rose drastically which lowere mortgage rates. Mortgage bonds were able to trend higher for the rest of the week but were stopped each time at the 200 day moving average. We are recommending LOCKING your Maryland mortgage rate as mortgage bonds have not been able to break above the 200 day moving average so risk is that mortgage bonds will move lower and cause home loan interes rates to move higher.
The big news last week was the “Sequester” which is mandatory spending cuts for 85 billion that went into effect March 1, 2013 because Congress failed to pass anything to address the automatic cuts. There has been a lot of rhetoric coming from Congress about how bad the sequester will be but most of it is just not true and the numbers being quoted are not even close. For example congresswoman Maxine Waters stated the Sequester would kill 170 million jobs. This is crazy because there are only 150 million working Americans so this would mean everybody would lose their job in the US plus 20 million jobs that aren’t even in existence.
The GDP for fourth quarter of 2012 was revised from -0.1% to 0.1% which is still very low. If you compare the GDP for the fourth quarter of the past 3 years you can see how low the current GDP is at 0.1%. We need the GDP to be at least 2.5% to keep economy stable.
There was some good news for housing as the Case-Schiller home index show year over year increase of 6.8% and November to December increase of 0.2%. January New Home Sales also increased by more than expected. Consumer Sentiment came in better than expected as well which shows consumer confidence in economy is improving. Weekly Initial Jobless claims last Thursday also came in better than expected by 20,000 at 344,000 versus the 360,000 expected.
The Next Free Maryland First Time Home Buyer Seminar is Saturday March 23, 2013 in Towson, Maryland. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com
John R. Thomas
Loan Officer – NMLS 38783
Primary Residential Mortgage, Inc.
1220A East Joppa Rd Suite 118
Towson, MD 21286
410-412-3319 MD Office