Maryland Mortgage Rates Weekly Market Update for the week of July 15, 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 were finally able to move lower last week after huge jump higher on July 5th from better than expected June Jobs Report.  If you look at the mortgage bond chart below you can see that mortgage bonds sold off big on July 5th with the Big Red Candle down but recovered on Monday with the big Green Candle then continued to move higher the rest of the week which helped Maryland mortgage rates move lower.  We are recommending FLOATING your Maryland mortgage rate to start the week to see if mortgage bonds can continue to rally higher.

mortgage bond chart 07-15-2013

What is the long term outlook for Maryland mortgage rates?

Mortgage rates have been trending higher since May 1, 2013 becasue mortgage bonds have been selling off and trading lower and lower each week for the most part.  If you look at the mortgage bond chart below you can see a Big Blue Line that is trending lower since May 1st.  Mortgage bonds need to break out above this falling trend line in order for mortgage rates to make a meaningful move to lower rates.  Mortgage bonds do appear to be overbought and the Feds are trying to calm the market about a pre-mature bond buying tapering so mortgage bonds are ripe for a Summer Rally which could break the long term trend of higher rates.  We are recommending FLOATING if you are buying at the end of August or September as we may catch this Summer Rally and see lower rates.


Last week we also saw the release of the Unemployment Numbers by State for May of 2013.  Maryland unemployment came in at 6.2% which is lower than the national average of 7.6%.  The June 2013 Jobs Report did appear to be good at first look but as we dig deeper we see that most of the jobs created were low-paying jobs or part time jobs.  This is not going to turn around the labor market so this may lead to Feds not tapering the bond buying program this year.  We also saw that for 18-29 year olds the unemployment rate was a staggering 16.1%!!  This shows that the future generation of American workers is serioulsy under employeed and are not getting the experience and skills they need to move forward in a career.

state unemployment for may 2013

We also saw the release of the Producer Price Index (PPI) for June 2013 and it came out higher than expected at 0.8% versus the 0.3% expected.  The PPI measures inflation at the wholesale level so this reading shows inflation is hotter than expected.  This can be bad news for mortgage rates as inflation is the enemy of bonds.  The bond market was able to shrug this off on Friday as most of the inflation was from higher energy costs.

If you would like to get a free mortgage planning appointment or a free mortgage pre-approval for a Maryland mortgage loan, please call 410-412-3319 or you can APPLY ONLINE.

The Next Free Maryland First Time Home Buyer Seminar is Saturday July 20, 2013 in Towson, Maryland. Register by calling 410-412-3319 or Register online at

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

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