Mortgage Rates
There is talk the Fed will stop purchasing bonds with the proceeds it receives from bonds previously purchased. The interesting thing is that there are some that feel that interest rates would decline if the Fed stopped purchasing bonds. That seems to be counter intuitive. Chris Wood, Chief Strategist for CLSA LTD. Hong Kong recently wrote, “It should be remembered that on those occasions when the Fed stopped or slowed quanto easing in the post-2008 era, the bond market rallied even though the Fed was buying fewer bonds.” It remains to be seen what would happen if the Fed stops buying bonds. The Fed has stated they would announce their intentions prior to taking any action.
We have some new programs for first time Home Buyers and moderate income households. With as little as 3% down, there is no PMI. This is a great program since there is no upfront MIP of 1.75% as is the case with FHA. Please call to confirm eligibility.
For the first time in several months, our rates have dropped below 3.75% for the 30 Year Fixed. Most of our rates are down a full 1/8.
Currently our rates for Home Buyers are as follows:
Conventional 30 Year Fixed 3.625%
Conventional 15 Year Fixed 2.875%
FHA 30 Year Fixed 3.125%
Our rates continue to be as much as .25% below the rates of our competitors. Rates are currently approaching a 12 month low.
Real Estate Market
The New Jersey Association of Realtors recently released the final stats for the month of July. As we the summer ends and we move into the fall season, let’s take a look at some numbers for Single Family Homes in the state of New Jersey year to date and how these numbers compare to 2016.
| 2016 | 2017 | Percent Change | |
|---|---|---|---|
| New Listings | 115,497 | 115,488 | 0.0% |
| Closed Sales | 65,520 | 73,329 | +11.9% |
| Average Sales Price | $354,080 | $359,897 | +1.9% |
| % of List Price | 96.5% | 97.3% | + 0.8 % |
| Days on Market | 82 | 73 | -11.0% |
The 2 numbers that caught my attention are the number of closed sales increasing by 11.9% and the days on market. Clearly this shows a strong demand. With prices relatively flat and the inventory flat, it seems like a well balanced market. Perhaps shifting somewhat towards the sellers. That being said, it’s a great time to purchase a home, particularly with the talk of interest rates possibly going up.
Soon we will be announcing our next Home Buyer Seminar. For upcoming dates, call me or visit www.HomeBuyer-Seminar.com All attendees will receive a $1,000 closing cost coupon, a home buying workbook and free lunch. There are many speakers including a Title Insurance Attorney, Credit Reporting specialist, Foreclosure expert, short sales expert and myself. Be sure to check out video of previous seminars on the website. 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.