Mortgage Rates
The Federal Open Market Committee (the Fed) that determines the discount rate will met on June 13th- 14th and raised the discount rate to 1.25%. The next meeting will be July 25th-26th. The forecast is for a minimum of one more rate increase this year. Everyone will be looking for hints from Yellen for future Fed action.
As the Trump administration continues its course, there still seems to be some apprehension on the economic front, particularly with foreign policy and how this can affect the international economic climate.
There are many new innovative mortgage programs that are available to borrowers in all categories. For low to moderate income households with income under $100K (not so low), there are no PMI programs available in many lender targeted areas. These are great programs particularly for those that have little or no down payment. For Jumbo loan borrowers, we can offer a no PMI program for down payments as low as 10%. Please feel free to call me regarding these wonderful programs.
Rates are hovering around 4%. Considering that rates approached 4.5%, rates at 4% are good news for the housing market. There was chatter about rates going to 5% and beyond. Let’s hope that doesn’t happen and rates continue to stay stable.
Currently our rates for Home Buyers are as follows:
Conventional 30 Year Fixed 3.75%
Conventional 15 Year Fixed 3.0%
FHA 30 Year Fixed 3.25%
Our rates continue to be as much as .25% below the rates of our competitors. Rates are currently approaching a 6 month low. That being said, its still a GREAT time to be purchasing property.
Real Estate Market
The New Jersey Association of Realtors recently released the final stats for the month of May. Let’s take a look at some numbers for Single Family Homes in the state of New Jersey year to date as we approach the half way point of the year and how these numbers compare to 2016.
| 2016 | 2017 | Percent Change | |
|---|---|---|---|
| New Listings | 83,467 | 82,836 | -0.8% |
| Closed Sales | 36,512 | 41,074 | +12.7% |
| Median Sales Price | $263,000 | $265,000 | +.8% |
| % of List Price | 96.2% | 97.0% | + 0.8 % |
| Days on Market | 89 | 79 | -11.2% |
It looks like we are seeing a “shift” in the market and it is moving towards a seller’s market. There is a lack of inventory as the number of closed sales has a marked improvement of 12.7%. This is a good time for sellers to put their house on the market and buyers that are on the fence to purchase a home before prices rise.
In June we had another standing room only Home Buyer Seminar in Central Jersey. On July 22nd, we will be having another seminar at the Holiday Inn in Somerset. All attendees will receive a $1,000 closing cost coupon, a home buying workbook and free lunch. There were many speakers including a Title Insurance Attorney, Credit Reporting specialist, Foreclosure expert, short sales expert and myself. You can find more information and registration information for future seminars at www.HomeBuyer-Seminar.com. Be sure to check out video of previous seminars. We would love to see you there. Feel free to invite your family and friends. Its not just for first time home buyers. Many participants that have previously purchased homes in the past find it helpful and recommend it to others that have already purchased a home and looking to purchase another in the future.