Mortgage rates have not increased after the Fed raised the discount rate in January. The Fed did not increase rates in the subsequent March meeting and there are mixed reports whether the Fed will increase rates in the April meeting. Although there was a slight increase in Unemployment, the economic climate in the US is stable to positive. Unfortunately that is not the case overseas and that seems to be a major cause of apprehension for the policy makers in the US.
Even if the Feds increase rates, I don’t foresee a major spike in mortgage rates anytime soon. With interest rates near 3 year lows and the robust spring market, it is a seller’s market in most of New Jersey. Bidding wars are not uncommon and it is a source of frustration for many buyers as well as Real Estate agents.
Sellers should get their house on the market as soon as possible to take advantage of a favorable seller’s market. Buyers should move quickly and aggressively with their offers. Be sure to submit a pre-qualification letter with the offer.
For those that are existing home owners and considering moving to a new home, consider renting your existing home instead of selling it especially if you have a low fixed rate mortgage. The rental market is robust and mortgage rates are near all time lows. Borrowing at the current low rates can be advantageous for those considering renting their current residence. Discuss the pros and cons with your Real Estate agent and let me know if you would like to discuss options with me.
We are sponsoring a Blood Drive on May 7th at our office. All Donors that attend and their family members will be treated to a Barbeque and there will be lots of give aways. Please register on our site at www.MontMtg.com We hope to see you there!
We are hosting another Free Home Buyer Seminar on April 23rd at the Hilton in Princeton. All attendees receive a $1,000 closing cost coupon and there is lots of valuable information. The seminar routinely fills up quickly so register soon at www.HomeBuyer-Seminar.com Speakers including a Title Insurance Attorney, a Credit Reporting Expert, Real Estate professionals and myself.
Currently our 30 year fixed is 3.375% and interest rates for super conforming are at 3.5%. Our rates continue to be as much as .25% below the rates of our competitors. Rates are near all time lows, a GREAT time to be buying.
Real Estate Market
The New Jersey Association of Realtors recently released statistics for the Month of February. As we approach May, let’s take a look at some year to date numbers for the state of New Jersey and how these numbers compare to last year.
|YTD 2015||YTD 2016||Percent Change|
|New Listings||12,572||12,562||-0.1 %|
|Median Sales Price||$270,000||$270,000||0.0%|
|Avg Sales Price||$350,328||$350,605||+0.1%|
|% of List Price||95.5%||96.0%||+.5%|
|Days on Market||94||94||0.0%|
Although it’s too early in the year to looking for trends, its nice to know that stats are flat compared to last year and the trend is toward a positive market.
Looks like we are in the midst of healthy Real Estate Market! That’s good for Buyers, Sellers and all parties associated with a Real Estate transaction.