Maryland Mortgage Rates Weekly Market Update for the Week of December 22, 2014 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 did move slightly higher last week as mortgage bonds touched ceiling of resistance and were turned lower. If you look at the mortgage bond chart below you can see mortgage bonds have been trading in a tight range over the last couple of weeks. Bonds have failed to break above this tough ceiling of resistance each time they have hit the line of resistance. But bonds have also rallied off support at the bottom black line which they did on Thursday. We are recommending LOCKING your Maryland Mortgage Rate if you are closing in the next 1-3 weeks as mortgage bonds have failed to break above resistance.
If you are not closing longer term we are recommending FLOATING if you are closing 30 days or longer as mortgage bonds could break above resistance. If bonds fall below support, we will quickly switch to recommending LOCKING longer term transactions. If you look at the mortgage bond chart below you can see why we are recommending floating longer term as bonds are still in a clear up trend on the chart so if the trend holds, they should break above the ceiling of resistance which would move mortgage interest rates to all time lows.
In Economic News, the Consumer Price Index (CPI) fell by 0.3% in November 2014 as falling oil and gas prices have lead inflation lower at the consumer level. This was the largest one month decline to the CPI in 6 years. Low inflation is good news for mortgage bonds and for home loan rates so this will keep home loan interest rates at all time lows. Year over year CPI is at 1.3% which is down from 1.7% in October 2014.
Thursday we saw the release of Weekly Initial Jobless Claims which came out 289,000 claims for the week which is down from the previous week. We are still below 300,000 claims and starting to trend lower which is very good news for the labor market. The 289k claims this week was better than expectations of 295,000 claims.
Oil is the big news lately as prices continue to drop which is making the price of gasoline drop with it. Oil hit about $53 a barrel last week. Most people see the drop in oil prices as a positive for the U.S. Economy but there isn’t all good news. For example, since 2009 40% of all new jobs have come from Texas and most of that growth is due directly to oil. Also, since December 2007 Shale Oil States have added 1.36 million jobs which non-shale states have lost 424,000 jobs. So without the boom in oil, the U.S. would still be in a recession.
Congress passed legislation called the “Tax Increase Prevention Act of 2014” which among other things makes Mortgage Insurance Tax Deductible again and made it retroactive back to January 1, 2014. So if you earned less than $109,000 in 2014, you can deduct the mortgage insurance you paid on your 2014 tax return.
In Housing News, Housing Starts for November 2014 dropped 1.6% from October 2014 to 1.028 Million Units on an annualized basis. Housing Starts measures the number of new homes that home builders started construction on in the month of November. This was below expectations of 1.04 Million units and shows that new home construction could be stalling at these levels.
The next Maryland First Time Home Buyer Seminar is Saturday January 31, 2015 in Towson, Maryland at the Sheraton Baltimore North Hotel. You can register by calling 410-412-3319 or online at Maryland Home Buyer Seminars
There is also a Maryland Home Buyer Seminar Saturday January 17, 2015 in Frederick, Maryland at the Hampton Inn. You can register by calling 410-412-3319 or online at Maryland Home Buyer Seminars
There is also a Maryland First Time Home Buyer Seminar Wednesday January 14, 2015 in Laurel, Maryland at the North Laurel Community Center. You can register by calling 410-412-3319 or online at Maryland Home Buyer Seminars
APPLY ONLINE today to be pre-approved for a mortgage to buy your first home in Maryland. Primary Residential Mortgage is an approved lender for the Maryland CDA Program
John R. Thomas
Loan Officer – FHA, VA & USDA Specialist – NMLS – 38783
Primary Residential Mortgage, Inc. – Baltimore Maryland Mortgage Company
1220A E Joppa Rd
Towson, MD 21286
410-412-3319 MD Office
302-703-0727 DE Office
610-906-3109 PA Office