June Mortgage Newsletter
There is concern that the tariff war with China could induce a global recession. Chetan Ahya, Morgan Stanley’s Chief Economist, “If talks stall, no deal is agreed upon and the U.S. imposes 25% tariffs on the remaining $300 billion of imports from China, we see the global economy heading towards recession.”
Ahya is predicting the Fed would bring rates all the way down to zero within the next year or so. Although lower interest rates would be wonderful for both businesses and consumers, no one wants it at the cost of a global recession. The consequences could be disastrous.
Earlier this month the Fed did not increase interest rates. President Trump is looking for a full percent cut of the discount rate. Atlanta Federal Reserve Bank President Bostic has stated that he can see it going either way depending upon if a trade agreement is finalized.
Mortgage Rates Trending Down
Our 30 Year Fixed rate is below 4% for the first time in over a year. Some of our rates are down .25%. Below are our current rates and the amount of decrease from last month.
Conventional 30 Year Fixed 3.875%APR; Down .125%
Conventional 15 Year Fixed 3.25% APR; Down .25%
FHA 30 Year Fixed 3.25%; Down .25%
10 Year ARM 3.875%; Down .25%
7 Year ARM 3.75%; Down .125%
The 15 Year Fixed rate is only 3.25%! If you are considering refinancing, be sure to get a quote for a 15 year fixed. Not only will you pay a much lower interest rate, you can save Thousands of dollars in interest.
The New Jersey Association of Realtors recently published Real Estate market data through the end of April.
New Jersey YTD 2018 YTD 2019 %+/-
New Listings 63,901 66,557 +4.2%
Pending Sales 38,622 40,105 +3.8%
Closed Sales 31,645 31,256 -1.2%
Median Sales Price $271,000 $281,500 s+3.9%
Average Sales Price $348,274 $$356,082 +2.2%
Days on Market 72 73 +1.4%
Affordability Index 150 146 -2.7%
Note the large increase in median price. Its interesting that affordability decreased by only 2.7% and the median price went up 3.9%. This is due to increases in wages and a decrease in interest rates. If interest rates continue to fall, that could fuel a sharp increase in prices. This is a good time for buyers to purchase.
NMLS ID 66034
2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929
Licensed Lender: Licensed by NJ Department of Banking and Insurance
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