The Federal Open Market Committee (the Fed) that determines the discount rate met this week. In accordance with forecasts, there was no increase in the discount rate. Rates are expected to rise later this year, perhaps as early as June. The committee continues to reinvest in agency mortgage backed securities. This has a positive impact on Mortgage rates.
As the Trump administration completes its first 100 days, 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.
Rates are back down to the 4% range. Considering that rates approached 4.5%, that’s 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 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 first quarter. Let’s take a look at some numbers for Single Family Homes in the state of New Jersey year to date through the first quarter of 2017 and how these numbers compare to 2016.
|Median Sales Price||$255,000||$258,000||+1.2%|
|% of List Price||95.9%||96.6%||+ 0.7 %|
|Days on Market||95||85||-10.5%|
The two numbers that jump out are Closed sales and Days on market. Closed sales are up over 13% from the first quarter of last year. That is a HUGE jump. Considering that new listings are nearly flat, this could be an indication of higher prices in the future. The days on market number change is also in double digits. That is also a possible indicator of higher prices in the future. That being said, these are only first quarter numbers. This could be spike in the market from pent up demand resulting from buyers sitting on the fence waiting to see results from the election. In any case, it is still a very healthy balanced market and a good time to buy or sell. A “win-win” for all.
In June we are having another Home Buyer Seminar in Central Jersey. We will be announcing the venue shortly. 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.