Maryland Mortgage Rates Weekly Market Update for the week of September 23, 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 moved lower to end the week last week after huge bond market rally on Wednesday. If you look at the mortgage bond chart below you can see on Wednesday mortgage bonds rallied with a big green candle after the Federal Reserve announced they would not taper the asset purchase program. Mortgage bonds have hit a big point of resistance as seen with the blue line on the chart. It will be tough for bonds to move above the line, so we are recommending LOCKING your Maryland mortgage rate to start the week.
In Economic News, the Federal Reserve Open Market Committee met on Tuesday and Wednesday to discuss economic policies and on Wednesday announced that they would not start tapering their $85 Billion month mortgage bond & US Treasuries purchase program called QE3. The Federal Reserve chairman Ben Bernanke stated that the economy was not strong enough yet to support a tapering of the asset purchase program. The stock and bond market rallied on the news.
Weekly Initial Jobless Claims were released on Thursday morning and claims increased by 15k claims to 309,000 claims. The number may still be low as two states are still trying to catch up on a backlog of claims that have not been processed. We are looking to see if this week the numbers for initial claims will be more accurate with all states reporting correctly.
In Housing News, Existing Home Sales for August 2013 increased by 1.7% and home prices increased by 14.4% year over year from August 2012 to August 2013. Home prices will continue to appreciate as there is a shortage of inventory, currently at a 4.9 month supply of homes for sale. The housing report also showed that distressed home sales accounted for only 12% of sales as compared to 33% of sales previously.
In New Construction, Housing Starts for August 2013 came in at 891,000 units which was 0.9% higher than July 2013 but was below expectations of 910,000 units. Building Permits for August 2013 dropped by 3.8% but the drop was in multi-family units as single family home building permits actually increased.
The Next Free Maryland First Time Home Buyer Seminar is Saturday October 19, 2013 in Towson, Maryland. Register by calling 410-412-3319 or Register online at http://www.MarylandHomeBuyerSeminars.com
John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage, Inc. – Baltimore Maryland Mortgage Company
1220A East Joppa Rd Suite 118
Towson, MD 21286
410-412-3319 MD Office