Rates On Rise?
The Federal Open Market Committee met on March 1st and raised rates .25%. The forecast is for 2 more rate increases this year and one more next year. There was a big inflation scare in February. Those fears were put to rest with the subsequent job report. Unemployment is stable at 4.1%. Long term rates such as Mortgage rates seem to be climbing due to the concern of unexpectedly large government deficits caused by tax cuts.
Looks like there could be a trade war in the near future. It will be interesting to see what the long term ramifications will be for the economy, Mortgage Interest rates and the Real Estate Market. Commentary is just getting started and arguments are being made on both sides. Let’s hope there is no negative impact on our economy.
In the last newsletter I listed Freddie Mac’s reported rate of 4.4%. Currently it is slightly higher at 4.45%. Our rate was at 4.25% and it looks like it is trending down. Stable or lower rates would are welcome as we head into what we hope will be an active spring market.
Our rates are mostly unchanged as follows:
Conventional 30 Year Fixed 4.25% APR
Conventional 15 Year Fixed 3.75% APR
FHA 30 Year Fixed 3.75%
10 Year ARM 4.125%
7 Year ARM 4%
The 10 Year ARM and 7 Year ARM rates are .125% higher this month.
The New Jersey Association of Realtors released its report for Real Estate activity in the state of New Jersey for the Month of February. Here are some interesting statistics:
New Jersey YTD 2017 YTD 2018 % Change
Closed Sales 13,477 13,456 -.2%
Days on Market 86 75 -12.8%
Median Sales Price $255,100 $268,500 +5.3%
New Listings 28,459 27,586 -3.1%
5.3% increase in year to date median sales price is a huge number! Buyers should be anxious to find a property and sellers should get their home on the market before the market trends the other way.
We have several very unique programs such as no PMI loans that are not only for first time homeowners. We have mortgages for purchasing a property and simultaneous renovations. Everyone has unique needs and feel free to call me to schedule a time for us to discuss your mortgage needs.
From time to time, we have Home Buyer Seminars. Please visit www.HomeBuyer-Seminar.com At the Homebuyer Seminar speakers provide valuable tools that assist in the Home Buying Process. Topics include Title Insurance, Pitfalls to avoid, how to get the best interest rates, all about Credit reports and much more. A free Home buyer workbook is provided to all attendees along with the $1,000 closing cost coupon. Reserve your spot today while there is availability.
NMLS ID 66034
NMLS ID 1541005
2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929