Maryland Mortgage Rates Weekly Mortgage Market Update for the week of March 4, 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 increased last week everyday starting with Monday when the mortgage bond tested the 200 day moving average and was turned lower. The bond sold off Thursday and then again big on Friday. The mortgage bond has resumed it trend lower as you can see from the chart below. We are recommending FLOATING to start the day on Monday to see if mortgage bonds can recover and help home loan rates move lower but if mortgage bonds continue the sell off then we will quickly switch to a LOCKING stance.
The mortgage bonds sold off on Wednesday into Thursday because of ADP payroll report stating about 196k jobs were created in February and then Thursday we saw the weekly initial jobless claims come in at 340,000 which is lowest level seen in a while. Then the big report on Friday was the Jobs Report for February 2013. The jobs report showed that 236,000 jobs were created versus the 165k expected so this rallied the stock market and pulled money out of bonds. We also saw the unemployment number from 7.9% to 7.7%. All of this was bad news for mortgage bonds as the Dow Jones set another all time record high.
The Jobs Report wasn’t all good. January Jobs Report numbers were revised lower from 156,000 jobs created to 119,000 jobs created. The unemployment number coming in at 7.7% wasn’t because people went back to work but was because less people were looking for work. This can be seen when we look at the Labor Force Participation Rate (LFPR) which came in lower at 63.5% which is the lowest reading since September 1981.
In housing news, CoreLogic reported that home prices from December 2012 to January 2013 increased by 0.7% and that prices year over year for January 2012 to January 2013 increased by 10%. This shows the housing market is still on a recovery. One of the reasons for upward pressure on home prices is the low inventory of homes available for sale in Maryland. This is causing buyers to be in multiple offer situations.
The Next Free Maryland First Time Home Buyer Seminar is Saturday March 23, 2013 in Towson, Maryland. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com
John R. Thomas
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