Well, the view from the beach this morning is not so good – foggy and somewhat chilly. What a comparison to the view from the trenches in the real estate market which is getting brighter and sunnier. We are seeing continued strong sales month after month in the beach markets, even some listings with multiple offers. Mortgage rates continue to bounce around record lows which helps drive affordability as well. It’s been a good Spring selling season and let’s hope it continues into the summer months.
The Delaware State Housing Authority (DSHA) announced on May 2nd that it was launching the “Loans for Heroes” program which gives qualified veterans a reduction of ½% below the current mortgage rate offered through the DSHA. All mortgage types available through the DSHA are eligible – VA, USDA, FHA, and conventional. All of the typical DSHA bond program requirements regarding income and price limits and qualification must be met, but the veteran can current own their primary home and still qualify. Borrowers must go through a participating lender and yes, Prosperity Mortgage is a participating lender. For more information give me a call or check out the press release here: Loans for Heroes
When speaking with clients, it’s sometimes hard to explain how low mortgage rates really are from an historical perspective. Here is a chart of the average 30 year fixed rate as surveyed by Freddie Mac since 1972. The chart shows the average annual mortgage rate for conventional, conforming loans below $417,000. Freddie Mac conducts a weekly survey of major lenders and publishes the results every Thursday. The average rate this past Thursday was 3.84% with 0.8% in discount points for a 30 year fixed rate purchase mortgage. Here is a link to the chart it online if you want to forward it to clients or associates. Historical 30 year Average Mortgage Rates
Mortgage bond prices finished the week slightly higher helping rates improve. The market was relatively stable after many weeks of volatile trading. We started the week on a positive tone as the PCE core index came in as expected. Trading was calm following the indication that inflation was in check. ISM Index data came in higher than expected which initially pressured rates but only slightly. The ADP employment figure was weaker than expected while the weekly jobs release was stronger than expected. The heavyweight employment report did little to settle the disparity as it was mixed. Mortgage interest rates finished the week better by about 1/4 of a discount point.
Here’s a link to my rate sheet online for real estate professionals: <a href="http://www.box.com/s/hypfnpup1ruq5069qkn6" title="http://www.box.net/shared/bxjyydagau
http://www.box.net/shared/uks538ajcm“>Baxter Rate Sheet
Have a great weekend and never hesitate to contact me if you need something – hit the cell, send an email, pop a text, or contact me on Twitter or Facebook. And, if you need to get a buyer pre-approved? Just send them to my secure online application – Baxter Online Mortgage Application – Click on “Start Your Application”