November 2018 Mortgage Newsletter

November Mortgage
Newsletter
Rates On The Rise
During the last 2 months, we have seen a significant increase in interest rates.
Although rates have recently come down a little, it did go up to 4.875%. That’s
an increase of .625% in 2 months. I can’t remember the last time that
happened. In the immediate future, I don’t see rates going above 5%.
As rates climb, I am getting more inquiries regarding Adjustable Rate
Mortgages. Everyone’s situation is different and be sure to consider all
possibilities associated with an ARM. Usually when an ARM adjusts, there is a
cap of 2% per adjustment and a lifetime cap of 5%. In case the rate goes up,
you should have an exit strategy. Hopefully the rates will go down before the
adjustment, so you can refinance. Otherwise you can pay down the mortgage
with assets. There is also the option of temporarily buying down the rate. For
those that are unfamiliar with this option, please call me and we can discuss
this as well as other options that might be a consideration.
For self-employed borrowers, there are new mortgage programs that have
alternatives to traditional documentation requirements. If your business has a
history of deposits in the bank account that can be documented for a period of
1 year or so, this may be sufficient as income verification. Although this sounds
complicated, it really isn’t. If you are self-employed, be sure to check out your
options.
As I mentioned earlier, rates have been on the rise. We have seen a sharp
increase in Mortgage Rates in the last 2 months. Interestingly our 7 Year ARM
and 10 Year ARM rates have not increased. Here are our rates. Here are our
current rates:
Conventional 30 Year Fixed 4.625%APR
Conventional 15 Year Fixed 4.0%APR
FHA 30 Year Fixed 4.25%
10 Year ARM 4.25%
7 Year ARM 4.125%
The New Jersey Association of Realtors released its report for Real Estate
activity in the state of New Jersey for the Month of August. Here are some year
to date (YTD) numbers:
New Jersey YTD 2017 YTD 2018 % Change
New Listings 146,325 147,358 +0.7%
Pending Sales 92,095 92,438 +0.4%
Closed Sales 88,001 87,818 -0.2%
Median Sales Price $281,000 $293,000 +4.3%
Average Sales Price $361,310 $370,676 +2.6%
Days on Market 71 64 -9.9%
Affordability Index 156 140 -10.3%
The affordability number is the only one that really sticks out. Other than that,
it’s still a very well-balanced market. A win-win for buyer and seller.
Vibha Singh
CEO
732-648-1748
NMLS ID 66034
Follow Us
2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com
Licensed Lender: Licensed by NJ Department of Banking and Insurance
© Montgomery Mortgage Solutions, Inc. All Rights Reserved. NMLS ID 19111

August 2018 Mortgage Newsletter

Rates On The Rise
The Feds raised the rates .25% two times this year and it was the seventh rate increase since 2015. 2 more rate increases are forecasted for this year. One of the big concerns for the economy is the increasing budget deficit. That number is going to eclipse 22 Trillion and the Treasury department will be increasing the size of bond auctions in the coming months.

One of the most important economic indicators for Mortgage rates is the 10 Year Treasury Note. Last year there was a budget deficit of $800 Billion. With the continued increase in budget deficit, that puts pressure on Treasury prices and rates can go higher.

Mortgage rates were stable during the month of July. The housing market in New Jersey has been robust and the strength of the economy is a reason for this even with the increase in mortgage rates. New construction is increasing and this is another good sign of a healthy market.

Inventory has been consistently lower and home prices continue to increase. Fortunately, the increases in the state of New Jersey have not been at a fast pace and it looks like we are not in danger of creating a bubble. Again, another sign of a healthy, well balanced market.

Currently our rates are approximately .125% higher than last month. We feel that rates will be stable through the end of the summer. Here are our current rates:

Conventional 30 Year Fixed 4.375% APR
Conventional 15 Year Fixed 3.75% APR
FHA 30 Year Fixed 3.75%
10 Year ARM 4.125%
7 Year ARM 4.0%

Please keep in mind that rates are subject to change based upon market conditions.

The Free Home Buyer Seminar is on hold through the end of September. All attendees receive a $1,000 coupon, a free 125 page workbook and get information regarding the entire life cycle of a Real Estate Transaction. Speakers include a Real Estate Attorney, Credit Reporting Expert, Real Estate Professional, Title Insurance Attorney and Home Inspector. You can see the schedule and details at www.HomeBuyer-Seminar.com

Vibha Singh
CEO
732-648-1748
NMLS ID 66034

Ambika Singh
Loan Officer
NMLS ID 1541005
Follow Us
2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com

July 2018 Mortgage Newsletter

Rates Stable
Not much to report regarding rates since our last newsletter. After increases and months of volatility, rates have been stable for several weeks now. It should continue that way through the end of the summer while consumers are vacationing and enjoying the summer season.
For those that are house hunting, there is still a lack of supply especially in the lower priced housing market. Whether you see forecasts in the news or speak to your Real Estate professional, all indications are that there is a lack of inventory. Surprisingly prices have been stable in New Jersey. That’s a sign of a healthy market. A win-win environment for both Buyers and Sellers.
Some forecasters are pessimistic due to the possible negative effects to the economy of trade wars. Otherwise all seems to be well even after several rate increases by the Feds and their commitment to continue increasing rates in the Future.
Currently our rates are exactly the same as they were at the beginning of the June. Again, we feel that rates will be stable through the end of the summer. Here are our current rates:

Conventional 30 Year Fixed 4.25% APR

Conventional 15 Year Fixed 3.625% APR

FHA 30 Year Fixed 3.75%

10 Year ARM 4%

7 Year ARM 3.875%

Please keep in mind that rates are subject to change based upon market conditions.
There are many attractive No PMI programs available for those putting down less than 20%, even for Jumbo Mortgages. The US Department of Agriculture (USDA) has a wonderful guarantee program that requires no money down with extremely attractive rates for properties in Rural Areas. You would be surprised that most of New Jersey is considered Rural including municipalities located in densely populated counties such as Somerset and even Middlesex County. There are also geographically targeted areas that have No PMI programs. Every consumer’s circumstance is unique. Don’t hesitate to contact us to discuss what program would be best for you.
The New Jersey Association of Realtors released its report for Real Estate activity in the state of New Jersey for the Month of May. Housing affordability index is a very important indicator of market conditions. Let’s take a look at 3 market segments, Single Family, Condo/Townhouse and Senior/Age Restricted Housing in New Jersey:

New Jersey Housing Affordability Index Comparison

Single Family 2016 2017 2018
Year to Date 151 152 141
% Change 0% +.7% -7.2%
Condos/Townhouses 2016 2017 2018
Year to Date 176 177 165
% Change 0% +.6% -6.8%
Senior/Age Restricted 2016 2017 2018
Year to Date 272 252 219
% Change -3.9% -7.4% -13.1%
The above Indices quantify affordability of housing. For example and index of 130 requires a median household income to be 130% of what is required for a median priced home under current interest rates. A higher number means greater affordability. As you can see above, the affordability index decreased signifying HOMES ARE LESS AFFORDABLE. Considering home prices (especially for single families and condo/townhouses) have been flat, Homes are becoming less affordable as a result of the rise in interest rates.

Vibha Singh
CEO
732-648-1748
NMLS ID 66034

Ambika Singh
Loan Officer
NMLS ID 1541005
Follow Us

2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com

June 2018 Mortgage Newsletter

Rates Continue to Trend Upward
Next week the Fed will be meeting again and the consensus is that they will increase rates several times this year. Anyone that has a Prime+ loan will be impacted. These types of loans are common for home equity loans and commercial loans. We can definitely try to refinance mortgages that have a variable rate indexed to prime.

Moody’s is reporting that there is a large number of interest only commercial loans and 2007 can happen all over again as it relates to the Commercial Mortgage Bond Market. These can be very risky since there is little or no equity and with Interest rates rising, there could be a bubble. Hopefully this will not have a negative impact on Residential Mortgage Interest rates and the overall Real Estate Market that seems to be steady and healthy.

In its Primary Mortgage Market Survey, Freddie Mac reported a rate of 4.66% for the week ending May 24th. This was the highest since weekending 5/2/2011 when the rate was 4.71%. Although the rate did come down to 4.55% the week ending May 31st, the trend is for rates to increase. That being said, rates are still very attractive for Home Buyers.

Currently our rates are exactly the same as they were at the beginning of the May. Again, we feel that rates will trend upward. Here are our rates:

Conventional 30 Year Fixed 4.25% APR

Conventional 15 Year Fixed 3.75% APR

FHA 30 Year Fixed 3.75%

10 Year ARM 4%

7 Year ARM 3.875%

The New Jersey Association of Realtors released its report for Real Estate activity in the state of New Jersey for the Month of April. As always, there is some very interesting data:

New Jersey YTD 2017 YTD 2018 % Change
New Listings 64,225 63,102 -1.7%
Pending Sales 38,178 39,300 +2.9%
Closed Sales 30,852 30,965 +0.4%
Median Sales Price $260,000 $274,000 +5.4%
Average Sales Price $340,918 $350,116 +2.9%
Days on Market 82 72 -12.2%
Affordability Index 166 152 -8.4%
Look at the decrease in affordability. Homes are becoming less affordable, the median price jumped much more than the average sales price. I still think that the jump in sales price of 5.4% is substantial. With rates increasing, there will be a negative impact on affordability.

This month we would like to present the Condo-Townhouse Market Segment. Check out these gaudy numbers:

New Jersey YTD 2017 YTD 2018 % Change
New Listings 3,271 3,231 -1.2%
Pending Sales 2,355 2,214 -6.0%
Closed Sales 1,974 1,892 -4.2%
Median Sales Price $170,000 $189,000 +11.2%
Average Sales Price $207,613 $226,082 +8.9%
Days on Market 76 66 -15.4%
A jump of 11.2% in the Median Sales Price and 8.9% in average are absolutely huge numbers and terrific for sellers. Buyers should get in as soon as possible to avoid future increases. Demand seems to be robust and the supply is actually going done so far this year.

We will be hosting a Free Home Buyer Seminar June 16th. For more information and registration, please visit www.HomeBuyer-Seminar.com All attendees receive a free 150 page Home Buyer workbook and a $1,000 Closing cost coupon. 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, no closing cost transactions, all about Credit reports and much more. Reserve your spot today while there is availability.

Vibha Singh
CEO
732-648-1748
NMLS ID 66034

Ambika Singh
Loan Officer
NMLS ID 1541005
Follow Us

2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com

May 2018 Mortgage Newsletter

Rates Rising
There are 3 rate increases expected by many that will be made by the Federal Open Market Committee. There are some Financial Commentators that are suggesting there should be more. Ron Insana of CNBC, “The Fed, Wednesday’s statement notwithstanding, will likely have to get more, rather than less, aggressive in its efforts to “normalize” interest rate policy. That could mean four, rather than three, rate hikes this year.” If Mr. Insana is correct and there are 4 rate increases, that is something the market is not expecting and it could result in a sharp spike in rates.

Employment numbers are expected to be announced and predictions are that there will be a decrease to 4.0%. Decreasing numbers could be another reason for a rise in rates. There are several other economic indicators that suggest that rates are on the rise.

As reported by Freddie Mac, the last time rates were in the 5% range was in February of 2011. If rates do go over 5%, it will be interesting to see how it will impact the Real Estate Market. On a national level, the Real Estate Market seems to be relatively steady and the rise in interest rates has not had a negative impact so far. Let’s hope that if rates go up, it will not have a negative impact on the Real Estate Market.

The New Jersey Association of Realtors released its report for Real Estate activity in the state of New Jersey for the Month of March. I can’t remember the last time we had such a large increase in the median price of homes. Here are some interesting statistics:

New Jersey YTD 2017 YTD 2018 % Change
New Listings 46,735 44,194 -5.4%
Pending Sales 27,620 27,963 +1.2%
Closed Sales 22,207 21,817 -1.8%
Median Sales Price $255,000 $269,900 +5.8%
Days on Market 85 74 -12.9%
Affordability Index 165 154 -6.7%
The median price number jumps out again this month. An increase of 5.8% is substantial. A decrease in new listings ie decrease in supply is a reason for the increase in price even though interest rates have been increasing. Although most of the indicators are leaning towards a seller’s market, the market seems to be well balanced.

This month I added the Affordability Index data. When affordability goes down, that means less people can afford a home. A decrease of 6.7% makes sense since median prices are up and homebuyer’s affordability is less due to the rise in interest rates. Long term this can have a negative effect on Home Values. So those thinking of selling, should get their house on the market. Those that are buying should do so soon before rates go up.

This month I would like to present the Adult Housing Market Segment. In the past, developers were complaining that the demand was not strong enough and in some cases, they convinced municipalities to allow for re-zoning from Senior Housing to non age restricted housing. They aren’t doing that any more. Check out these numbers:

New Jersey YTD 2017 YTD 2018 % Change
New Listings 2,405 2,290 -4.8%
Pending Sales 1,721 1,578 -8.3%
Closed Sales 1,422 1,350 -5.1%
Median Sales Price $165,000 $185,500 +12.1%
Days on Market 79 66 -16.5%
Developers are now acknowledging that this is “Hot Market” and many are anxious to get into it especially in New Jersey with the densely populated senior community.

We had a slight increase of .125% in the beginning of April and it came back down to pretty much the same as we reported in the last Newsletter:

Conventional 30 Year Fixed 4.25% APR

Conventional 15 Year Fixed 3.75% APR

FHA 30 Year Fixed 3.75%

10 Year ARM 3.875%

7 Year ARM 4%

The 10 Year ARM and 7 Year ARM rates are .125% lower this month as compared to what was reported in April.

We will be hosting a Free Home Buyer Seminar June 16th. For more information and registration, please visit www.HomeBuyer-Seminar.com All attendees receive a free 150 page Home Buyer workbook and a $1,000 Closing cost coupon. 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, no closing cost transactions, all about Credit reports and much more. Reserve your spot today while there is availability.

Vibha Singh
CEO
732-648-1748
NMLS ID 66034

Ambika Singh
Loan Officer
NMLS ID 1541005

Follow Us
2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com

April 2018 Mortgage Newsletter

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.

Vibha Singh
CEO
732-648-1748
NMLS ID 66034

Ambika Singh
Loan Officer
NMLS ID 1541005

Follow Us
2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com

March 2018 Mortgage Newsletter

Mortgage Rates Higher
The upward trends for mortgage rates continue and we are approaching 6 year highs. Freddie Mac forecasted rates at 4.6% for 2018 and that’s the highest I recall seeing. Last year when forecasts were being made, I don’t think anyone predicted such a steep rise. Let’s hope rates stabilize soon. I am not sure how consumers would react to 5% rates especially since we have not seen rates that high in many years.

As we approach the historically busy spring market, I would say that the number of prospective clients seeking pre-approvals and inquiries has been just as good as past years, if not better. If this is an indicator of things to come, the market should be stable. Many of our Real Estate Partners have mentioned that their client pipelines are as healthy as ever.

To illustrate just how much the interest rates have gone up in a short period of time and how they compare to the past several years, let’s take a look at some of the historic interest rates as reported by Freddie Mac:

Rates Points (Lender Fees)
Last Week 4.4% .5
January 2018 4.03% .5
2017 3.99% .5
2016 3.65% .5
2015 3.85% .6
2014 4.17% .6
2013 3.98% .7
2012 3.66% .7
2011 4.45% .7
Wow! We are only .05% off the average of 2011! As you can see, this is a significant number.

Recently I was reminded by some senior Mortgage Bankers that in the early 80s, interest rates were as high as 18% and there was still plenty of activity. Personally I recall paying over 7% when we purchased our first home several years ago in Montgomery. Even 5% is an incredible rate. This is something all current homebuyers should keep in mind, especially the Millennials. On a positive note, hopefully interest rates will go down in the future and there will be an opportunity for borrowers to refinance into lower interest rate Mortgages and or Mortgages with a shorter term.

Our interest rates are consistently .25% lower than other lenders. In a rising interest rate environment, this is very important as it can make a difference in home owner affordability. Our current rates as of February 1 are:

Conventional 30 Year Fixed 4.25% APR

Conventional 15 Year Fixed 3.75% APR

FHA 30 Year Fixed 3.75%

10 Year ARM 4%

7 Year ARM 3.875%

The above rates reflect an increase of .25% over what I reported in last month’s Newsletter. As interest rates rise, consumers will consider ARMs. This will be particularly desirable for Jumbo mortgages and for those that have a definitive exit plan if rates go up. For conforming mortgage borrowers, in my opinion, the rates are still low and if you can afford it, go with the fixed rate mortgage.

I would like to thank all of those that have been attending our past seminars. For more information regarding upcoming seminars, please visit www.HomeBuyer-Seminar.com.

Vibha Singh
CEO
732-648-1748
NMLS ID 66034

Ambika Singh
Loan Officer
NMLS ID 1541005

Follow Us
2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com

February 2018 Mortgage Newsletter

February 2018 Mortgage Newsletter
Mortgage Rate Increase Alert
During the month of January, rates increased a full .25%. That does not happen very often. Last time it happened was immediately after the Presidential election in 2017. There is so much positive momentum for the economy, many economists are predicting Mortgage Interest rates will increase both in the short and medium term. Although I do agree that rates will increase, I don’t foresee a steep increase. It’s been many years since rates have been over 5.0%. Let’s hope that doesn’t happen.
Here are some interesting statistics from the National Association of Realtors:
30 Year Fixed Rates
2016 3.6%
2017 4.0%
2018 4.6%
That’s an increase of 1% in a period of 2 years. The above are national averages as reported by NAR. Our rates have been considerably less. Our current rates as of January 1st are:
Conventional 30 Year Fixed 4.0% APR
Conventional 15 Year Fixed 3.5% APR
FHA 30 Year Fixed 3.625%
There is more commentary regarding the recent tax changes. In expensive Real Estate Markets such as New Jersey, there will be an effect on prices. There will be a direct effect on the higher end market. Sales of Lower price ranged homes will continue to be well balanced since there is not much new supply.
The New Jersey Association of Realtors has published final numbers for 2017. Here are some numbers for New Jersey and a snapshot of Central Jersey:

New Jersey 2016 2017 % Change
Closed Sales 106,385 115,991 +9.0%
Days on Market 80 7.1 -11.3%
Median Sales Price $280,000 $280,000 0%
New Listings 176,621 178,756 1.2%
Closed sales are up a whopping 9%! It’s absolutely remarkable that median prices are the same considering the supply of New Listings is relatively flat and days on market are down. If the New Listings remain constant and closed sales continue, it will be interesting to see if Median Sales Prices increase.

Here is Central New Jersey:

Central New Jersey 2016 2017 % Change
Closed Sales 2,816 2,890 +2.6%
Days on Market 73 67 -8.2%
Median Sales Price $449,228 $455,000 +1.3%
New Listings 4,760 4,657 -2.2%
The above illustrates that Central Jersey is a reflection of the state statistics.

Free Upcoming Seminars
Last month we hosted an Investment Seminar for the first time ever. In addition to new comers, it was great to see some of our past clients attend the seminar. We are committed to hosting both the Home Buyer and Investment seminars on the 3rd Saturday of each month except for November and December. Attendees will receive a $1,000 closing cost coupon and lots of valuable information. This month both seminars will be on February 17th. For the Home Buyer Seminars, you can register at www.HomeBuyer-Seminar.com. The registration for the investment seminar can be done at www.NJRealEstateSeminars.com There are many very interesting topics including at the investment seminar:

Little Known Websites where you can find good deals.
All about Short Sales, Tax Sales, Foreclosures, Estate Sales, Distressed Sales and REOs.
How to use Retirement Funds to purchase Real Estate without paying penalties.
Flipping VS Holding
Title Issues as they relate to Foreclosures and Tax Sales
Investment Clubs
Real Estate Syndication
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.

Vibha Singh

CEO

732-648-1748

NMLS ID 66034

Ambika Singh

Loan Officer

NMLS ID 1541005

Follow Us

2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Email: info@montmtg.com

Licensed Lender: Licensed by NJ Department of Banking and Insurance
© Montgomery Mortgage Solutions, Inc. All Rights Reserved. NMLS ID 19111

January Mortgage Newsletter

Mortgage Rates and Politics

Happy New Year! I am excited to announce that we are now licensed in Pennsylvania and Florida. We have excellent rates particularly for second home owners in Florida. Please consider mentioning this to your family and friends if they have a mortgage need.

The new Tax laws will have an impact on housing and mortgages. The threshold of mortgage balance has been lowered for the interest deduction. Consult your tax professional to see how the new Tax laws will impact you.

There is concern by many that inflation could be a problem. If so, that could push home mortgage rates up. The fed has stated that interest rates will be increased this year and there are those that are predicting as many as 3 rate increases. Interestingly consumer confidence in 2017 was very high regarding the job market and overall economy.

After many years of the same loan limits, FannieMae, Freddie Mac and HUD have made increases:

New 2018 Conforming Loan Limits Table

Units Contiguous States Alaska and Hawaii
General High-Cost General High-Cost
1 $453,100 $679,650 $679,650 $1,019,475
2 $580,150 $870,225 $870,225 $1,305,325
3 $701,250 $1,051,875 $1,051,875 $1,577,800
4 $871,450 $1,307,175 $1,307,175 $1,960,750

The above increased loan limits can have a positive effect on Real Estate Values.

Although we have been able to keep our rates at 3.75% for a 30 year fixed, the short term trend is for rates to go up. Currently our rates for Home Buyers are as follows:
Conventional 30 Year Fixed 3.75% APR
Conventional 15 Year Fixed 3.0% APR
FHA 30 Year Fixed 3.25%

Upcoming Seminars

  • For the first time ever, we will be sponsoring a Real Estate Investment Seminar. They will be taking place after our Home Buyer Seminar the 3rd Saturday of every month. Attendees will receive a $1,000 closing cost coupon and lots of valuable information. This month both seminars will be on the 20th of January at the Holiday Inn in Somerset on Davidson Avenue. On February 17th, the seminars will be held in Princeton at the Homewood Suites. For the Home Buyer Seminars, you can register at www.HomeBuyer-Seminar.com. The registration for the investment seminar can be done at www.NJRealEstateSeminars.com There are many very interesting topics including:
  • Little Known Websites where you can find good deals.
  • All about Short Sales, Tax Sales, Foreclosures, Estate Sales, Distressed Sales and REOs.
  • How to use Retirement Funds to purchase Real Estate without paying penalties.
  • Flipping VS Holding
  • Title Issues as they relate to Foreclosures and Tax Sales
  • Investment Clubs
  • Real Estate Syndication

Next month’s newsletter will include the 2017 year in review as we will get year end data from New Jersey Association of Realtors. Please Feel free to reach out to us for more information. We hope to see you at one of our seminars!

September Mortgage Newsletter

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.

August Mortgage Newsletter

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.

July Mortgage Newsletter

Mortgage Rates

The Federal Open Market Committee (the Fed) that determines the discount rate will met on June 13th- 14th and raised the discount rate to 1.25%. The next meeting will be July 25th-26th. The forecast is for a minimum of one more rate increase this year. Everyone will be looking for hints from Yellen for future Fed action.

As the Trump administration continues its course, 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 10%. Please feel free to call me regarding these wonderful programs.
Rates are hovering around 4%. Considering that rates approached 4.5%, rates at 4% are 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 continue to 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 month of May. Let’s take a look at some numbers for Single Family Homes in the state of New Jersey year to date as we approach the half way point of the year and how these numbers compare to 2016.

2016 2017 Percent Change
New Listings  83,467   82,836 -0.8%
Closed Sales  36,512 41,074 +12.7%
Median Sales Price $263,000 $265,000  +.8%
% of List Price 96.2%  97.0% + 0.8 %
Days on Market 89 79 -11.2%

It looks like we are seeing a “shift” in the market and it is moving towards a seller’s market. There is a lack of inventory as the number of closed sales has a marked improvement of 12.7%. This is a good time for sellers to put their house on the market and buyers that are on the fence to purchase a home before prices rise.

In June we had another standing room only Home Buyer Seminar in Central Jersey. On July 22nd, we will be having another seminar at the Holiday Inn in Somerset. 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.

April Mortgage Newsletter

Mortgage Rates

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.

2016 2017 Percent Change
New Listings 46,741    46,322 0.9%
Closed Sales  19,323  21,871 +13.2%
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.

November Mortgage Newsletter

Mortgage Rates
Being in the Mortgage industry for over 20 years, it still amazes me how unpredictable mortgage interest rates can be. At the end of 2015, the fed increased the discount rate and it had no effect on mortgage interest rates. You would think with republicans receiving a mandate in the recent elections, the mortgage rates would be flat or lower. Well guess what happened? Rates have gone up and are now near 2 year highs crossing 4%. It will be very interesting to see if mortgage rates will continue to rise after Trump takes office. It is my opinion that the Real Estate Market is still kind of flat in most markets and if anything, there is room for rates to go back down again

In my last newsletter I had mentioned the comeback of mortgage programs such as no PMI loans and the 80-10-10 program for those putting down 10%. We now have a no income verification program for Self employed borrowers. Need to have good income and bank proof of funds is required. The mortgage market seems to be loosening up and that’s good news for all.

On November 19th, we had a standing room only Free Home Buyer Seminar at the Holiday Inn on Davidson Avenue in Somerset. All attendees received 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. There is another one scheduled at the same venue in January. You can find more information and registration at www.HomeBuyer-Seminar.com. 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.

As I mentioned, rates have crossed 4.25% for many lenders. We are still under 4%

Currently our rates for Home Buyers are as follows:
Conventional 30 Year Fixed 3.875%
Conventional 15 Year Fixed 3.125%
FHA 30 Year Fixed 3.25%

Our rates continue to be as much as .375% below the rates of our competitors. Rates are currently are approaching 2 year highs. That being said, its still a GREAT time to be purchasing property.

Real Estate Market
The New Jersey Association of Realtors recently released statistics for the Month of October. As we approach the of the end of the year, we have some solid data to consider although I am anxious to see what happens after Trump takes office. Let’s take a look at some year to date numbers for Single Family Homes in Central Jersey and how these numbers compare to last year.

YTD 9-2015 YTD 9-2016 Percent Change
New Listings 4,037 4,059 +0.5%
Closed Sales 2,058 2,136 +3.8%
Median Sales Price $469,450 $468,500 – 0.2%
% of List Price 91.1% 97.1% + 0.0 %
Days on Market 71 71 – 0.0 %

The stats above suggest that it’s pretty much a flat or balanced market. Perhaps a good time for both buyers and sellers.