Maryland Mortgage Rates Weekly Market Update for the week of July 29, 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 stayed about the same last week as the mortgage bond tried to make a run higher but was turned lower by the falling trend line. If you look at the mortgage bond chart below you can see the downward blue trend line which has caused mortgage rates to move higher since May 2013. Mortgage bonds have tried to break through this long term falling trend line but each time have been turned lower. Last week we ended the week closing above the 25 day moving average which hasn’t happened since April 2013 so we are recommending FLOATING your Maryland Mortgage Rate to start the week to see if bond can make a run at the falling Blue trend line and break through it. If we break through the trend line mortgage rates will move lower.
In Economic News, next week has multiple events that can cause a big move in the stock and bond markets. The first is the Federal Open Market Committee Meeting which starts on Tuesday. The FOMC will release its monetary policy statement on Wednesday and the whole world will be watching to see what is mentioned about the bond buying program called QE3. If the Feds mention tapering the bond buying program this year, that would cause a sell off in mortgage bonds and interest rates would jump higher. But if FOMC states bond buying program will continue unchanged into 2014 this could cause mortgage bonds to rally and break through the Falling Long Term Trend Line. This could be the start of a Summer Rally in the bond market. Wednesday also has the release of the ADP Payroll report which will be a precursor to the all important Jobs Report on Friday. If we get bad news on the Jobs Report this would definitely be enough to support a Summer Rally in mortgage bonds.
In Housing News, New Home Sales for June 2013 was released and it surged higher by 8.3 percent to 497,000 Sales. This is a 38 percent increase from June 2012 till June 2013. Existing Home Sales for June 2013 came in lower than expected and dropped 1.2% from May 2013 to June 2013.
In Economic News, last week we saw the release if Initial Jobless Claims on Thursday which jumped higher by 7,000 claims to 343,000 claims. The jobless claims have been see-sawing lower and higher week to week which shows no clear sign of improvement in the Labor Market. We did see some good news with the release of Consumer Sentiment which came in better than expected at 85.1 which was the highest reading in 6 years. This shows consumers are feeling pretty good about the state of the economy.
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