Maryland Mortgage Rates Weekly Market Update for the week of May 13, 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 continued to move higher last week as the mortgage bond sold off and broke below the 200 day moving average. If you look at the mortgage bond chart below you can see that Friday May 3rd mortgage bonds plunged as April Jobs Report came out much better then expected then last week bond tried to stablizes above the line of support but broke below the support at 200 day moving average on Thursday and sold off into Friday. This caused mortgage interest rates to move higher. We are recommending LOCKING your Maryland mortgage rate as the bond could continue to sell off as there is no clear level of support. PIMCO’s Bill Gross stated the Bull Run in Bond Market is over and Bonds are now overbought. Warren Buffett also stated great time to buy stocks and not bonds as bond market is overbought because of Federal Reserve bond buying program.
We saw Weekly Initial Jobless Claims on Thursday come in better than expected at 323,000 claims. This continues the trend of lower claims that we have seen in the last 4 weeks. This news is helping boost the stock market which set another all time record high last week. The jobless claims shows labor market improving but if we look at the Labor Force Participation Rate (LFPR) we see that it still remains at 63.3% which is very low. THE LFPR is telling us jobless claims going down not because people going back to work but because people have stopped looking or took part time work.
In Housing News, we saw CoreLogic report a 10.5% increase in home prices in March 2013 from March 2012. This is the 13th consecutive month of reported home price appreciation and it is the biggest annual jump since March of 2006. Report also showed a 1.9% increase in home prices from February 2013 to March 2013. All states reported home price increase in March except for 4 states. This again shows that the housing market is making a recovery but still a great time to buy as average home price is still 25% below the peak in April 2006.
Fannie Mae and Freddie Mac reported record profits for the first quarter of 2013 which is good news for home loans. The two mortgage giants are profitable and no longer need government assistance.
The Next Free Maryland First Time Home Buyer Seminar is Saturday June 15, 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