Maryland Mortgage Rates Weekly Market Update for the Week of November 3, 2014 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 ended the week slightly higher than where they started as mortgage bonds sold off last week. If you look at the mortgage bond chart below you can see that bonds have started trading lower and the short term trend is for bonds to sell off and move mortgage interest rates higher. The stock market rallied last week and set another all time record high which is the catalyst for mortgage bonds selling off. Mortgage were able to stabilize at the end of the week so we are recommending cautiously FLOATING Your Maryland Mortgage Rate to start the week.
In Economic News, The Federal Reserve announced the end of its Asset Purchase Program QE3 at the end of October 2014. The Federal Reserve had been buying $15 Billion a month in U.S. Treasuries and Mortgage Bonds. The program is now officially ended. When the last two asset purchase programs ended, the stock market sold off and mortgage rates were moved lower. We will need to watch to see if history repeats itself again this time.
The first reading of GDP for the 3rd quarter came in at 3.5% above the 3.0% expected. The number was good but when you dig deeper into the report, it shows weak manufacturing and weak consumer demand.
Thursday saw the release of the Weekly Initial Jobless Claims which came in at 287,000 clams which was up 3,000 claims from the previous week. The weekly claims still remains below the 300,000 mark which is good for the labor market.
In Housing News, Pending Home Sales for September 2014 were up 0.3% from August at 105 Million Units. Pending Home Sales measures signed contracts on existing homes. Year over Year Pending Home Sales are now up 1%, the first annual gain in 11 months. Inventories are starting to build, up 6% year over year.
APPLY ONLINE today to be pre-approved for a mortgage to buy your first home in Maryland. Primary Residential Mortgage is an approved lender for the Maryland CDA Program
John R. Thomas
Loan Officer – FHA, VA & USDA Specialist – NMLS – 38783
Primary Residential Mortgage, Inc. – Baltimore Maryland Mortgage Company
1220A E Joppa Rd
Towson, MD 21286
410-412-3319 MD Office
302-703-0727 DE Office
610-906-3109 PA Office