Mortgage Rates
During a recent interview with Bloomberg, Former Fed Chair, Alan Greenspan mentioned that there is a bubble in Bond Markets. If he is right, there could be a rapid increase in rates. Greenspan has been talking about the bond bubble for the past couple years. Billionaire value investor Howard Marks is encouraging investors to seek safer investments even though the S & P has increased 10% Year To Date.
As the Trump administration continues its course, there are those that feel America’s status as a World Economic Leader are at risk. Hopefully this will not have a negative impact on the housing market and interest rates.
There are many new innovative mortgage programs that are available to borrowers in all categories. We have a very nice program for those that are looking to purchase a home and need renovation money. Almost like an acquisition and construction loan. So you can buy a home that needs some TLC.
Rates continue to hover around 4%. This is the 3rd consecutive month that we are reporting exactly the same rate. I can’t remember the last time that happened. It doesn’t get any more stable than that. It will be interesting to see if that continues once the summer is over.
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 9 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 June. As we pass the half way point of the year, 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 | 100,435 | 100,161 | -0.3% |
| Closed Sales | 56,233 | 63,204 | +12.4% |
| Median Sales Price | $348,236 | $356,555 | +2.4% |
| % of List Price | 96.4% | 97.2% | + 0.8 % |
| Days on Market | 85 | 76 | -10.6% |
The 2 numbers that caught my attention are the number of closed sales increasing by 12.4% 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 the bond bubble that can drive up interest rates quickly.
On July 22nd, we had another successful Free Home Buyer Seminar at the Somerset Holiday Inn on Davidson Avenue. We are skipping August and will schedule one in September. For those that have not attended or those that need a refresher, check www.HomeBuyer-Seminar.com for upcoming dates. 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.