Maryland Mortgage Rates Weekly Market Update for the week of August 12, 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 ended the week almost where they started as mortgage bonds were not able to break out of tight trading range. If you look at the mortgage bond chart below you can see mortgage bonds traded in a tight range for the past two weeks. Mortgage bonds did break below the trading channel on Thursday before Jobs Report but quickly recovered once July 2013 Jobs Report came out worse than expected. Mortgage bonds continue to trade in tight range below the falling trend line. We are recommending FLOATING your Maryland mortgage rate to start the week to see if mortgage bonds can move above the falling trend line to start a Summer Rally in the mortgage market which would move interest rates lower.
In Economic News, Thursday we saw the release of the weekly initial jobless claims which came in at 333,000 which was 5,000 more claims from the previous week of 326,000 claims. This comes after a worse than expected July 2013 Jobs Report which showed only 161,000 jobs created versus the 175,000 jobs expected. A weak labor market may sway the Federal Reserve to delay the tapering in the mortgage bond program until 2014 versus starting in September 2013.
In Political News, The United States Congress has left for its yearly August vacation. When Congress returns in September they will have to deal with debating the Debt Ceiling as it will need to be increased by October as the US will again hit the ceiling on its limit for borrowering money. The news on these debates could be a big market mover which could hurt the stock market and benefit the bond market in the short term.
In Housing News, CoreLogic released its report on home prices in the United States with its Home Price Index for June 2013. The report showed that home prices increased by 11.88% from June 2012 to June 2013. This is more than double the increase we saw from June 2011 to June 2012 which was only 3.76%. The Housing market is making a strong recovery and home prices look to continue to appreciate throughout 2013 into 2014. We recommend if you are considering purchasing a home, get off the fence and get under contract now!
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