Maryland Mortgage Rates Weekly Mortgage Market Update for the week of February 18, 2013 from John R. Thomas with Primary Residential Mortgage. 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 ended the week higher last week as the stock market continues to pull money out of bonds into stocks. If you look at the bond chart below you can see that mortgage bonds have been trending lower since the beginning of the year which has caused home loan interest rates to move higher. This means it is best to LOCK your Maryland mortgage rate for any short term transactions closing in the next 30 days. Long term you can float as the stock market should pull back from its run up and this would move home loan rates lower.
The stock market is being pushed higher by some good economic news on the US economy. Last week we saw the Consumer Sentiment Report come out better than expected for February at 76.3% which is above expectations of 73.5. Empire Manufacturing Report was also better than expected by 10 points versus 0 expected. The Labor Department released weekly initial jobless claims last Thursday which came in 27,000 lower than expected and came in at 341,000. This is another sign that economy is recovering and is helping investors move money into riskier investments like the stock market.
Last week, the National Association of Realtors reported that the national median existing single-family home price surged 10% since this time last year to $178,900. This year over year increase of 10% was the largest gain since the fourth quarter of 2005.
Last week we discussed FHA is increasing Mortgage Insurance on April 1, 2013 and will also be making it for the life of the loan on June 3, 2013. These changes are a result of FHA saying the MIP Fund is running low on money but HUD has the money in its General Fund which it moved out of MIP Fund. So doesn’t seem like FHA needs to raise MI, below is link to a great video from the National Real Estate Post that explains everything in detail:
Then 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.
410-412-3319 MD Office