Maryland Mortgage Rates Weekly Market Update for the week of July 8, 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 surged higher last week after better than expected June 2013 Jobs Report beats expectations. Mortgage bonds sold off and dropped 200 basis points causing lenders increase mortgage rates. Rates jumped almost 0.5% in a week. Long term rates look to stay between 4.5% and 5.5% for the next 6 months to a year. If you look at the bond chart below you can see mortgage bonds sold off about 44 basis points on Wednesday into the July 4th holiday in anticipation of a better than expected jobs report. Friday mortgage bonds fell off a cliff after jobs report came out and beat expectations. We are recommending FLOATING your Maryland mortgage rate to start the week as we see mortgage bonds very oversold and ripe for a bounce higher.
The Labor Bureau released the June 2013 Jobs Report and it came out at 195,000 jobs created versus expected 166,000 jobs. They also revised April and May Jobs reports higher by 70,000 jobs added. This rallied the stock market and dropped the bond market. The report wasn’t really all that good as unemployment stayed a 7.6% and the U6 number actually increased to 14.3%. The U6 unemployment number includes people that took part time work and stopped looking for work which aren’t included in the 7.6% unemployment number.
In Housing News, CoreLogic reported that home prices increased by 12.2% from May 2012 till May 2013. They also reported that home prices increased by 2.6% from April 2013 to May 2013. This again shows that home prices are increasing and housing is making a recovery but home prices are still 20.4 percent below the peak in 2006 so still a great time to purchase a home in Maryland! CoreLogic also predicted that home prices would increase from June 2013 to June 2014 by 13.3%.
The Next Free Maryland First Time Home Buyer Seminar is Saturday July 20, 2013 in Towson, Maryland. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com
John R. Thomas
Senior Loan Officer – NMLS 38783
Primary Residential Mortgage, Inc. – Baltimore Maryland Mortgage Company
1220A East Joppa Rd Suite 118
Towson, MD 21286
410-412-3319 MD Office