Maryland Mortgage Rates Weekly Market Update for the week of June 3, 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 Bernanke made comments that shook the markets. Stocks, Bonds, and Oil all sold off on Wednesday after Bernanke made his comments following the release of the Federal Open Market Committee minutes. The mortgage bonds continued the sell off the rest of the week as you can see from the mortgage bond chart below. The big red candle on Wendnesday was the giant sell off then again on Friday a big red candle for equally big sell off in the bond market. Rates have moved up for 8 straight weeks after reaching all time record lows on May 1, 2013. We are recommending cautiously FLOATING your Maryland mortgage rate to start the week to see if mortgage bonds can bounce higher.
In housing News, we saw Existing Home Sales for May 2013 increase from 4.59 Million units to 5.18 Million units which is an increase of 12.9% from May 2012. Housing Starts for May 2013 also increased by 28% from May 2012 and were up 7% from April 2013. Housing starts are a measure of the number of new construction homes that ground was broken on to start construction for the month.
In economic news, last week we saw the release of the Consumer Price Index which came in at 0.1%. The CPI is a measure of inflation and 0.1% is very tame so the Federal Reserve has lowered their prediction on inflation for 2013 down to a range of 0.8% to 1.2% which is well below their target of 2%. Thursday we saw the release of weekly initial jobless claims which showed a 18,000 increase prior week at 354,000 claims. This shows the labor market can’t get a consistent reading that is showing an improving labor market.
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