Maryland Mortgage Rates Weekly Market Update for the week of May 27, 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 Ben Bernanke testified on Capitol Hill. The mortgage bond chart below shows a big red candle on Wednesday May 22, 2013 after Bernanke testimony. The Red Candle shows mortgage bond selling off which forced Maryland home loan rates higher. Mortgage bonds were able to find a level of support on Thursday and Friday so we are recommending FLOATING your Maryland mortage rate to start the week. If mortgage bonds break below support this week, we will quickly switch to a locking stance.
What did Bernake say on Wednesday to throw the markets into a tail spin? Ben switched his message and stated that Federal Reserve was now considering tapering the bond buying program this year which is in contrast to the message of continuing into 2014. This caused the U.S. stock market and bond market to sell off and even spilled into the international markets.
In Housing, we had some good news as the April 2013 New Home Sales Report was released. New Home Sales came in better than expected at 454,000 units for April 2013 which was almost 100,000 higher than April 2012. The report also revised March 2013 New Home Sales from 417k up to 440k. So all in all great report and shows housing is continuing to improve.
Thursday we saw the release of the weekly initial jobless claims which dropped 23,000 from last week down to 340,000 which was better than expected. This shows the labor market is starting to improve but still has a long way to go. Labor Force Participation Rate still remains at level not seen since the 1970s.
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