Contrary to projections, Mortgage rates have declined after the Fed increased the interest rate. In my last Newsletter, I mentioned that it was a strong possibility that mortgage interest rates would not increase. Although I strongly feel that interest rates will continue to be steady for the short term, they can go up at anytime there is a sharp increase in indicators such as inflation and or if there is a positive shift in key economies around the globe. In fact, it seems the US is committed to maintaining a balanced global economy.
For those that have adjustable rate mortgages indexed to Libor or Prime, you should consider refinancing into a fixed rate mortgage or into a longer termed ARM then you currently have. The Libor is up significantly and projections are that the prime will increase by ½ to ¾ by the end of the year.
Currently our rates for Home Buyers are as follows: Conventional 30 Year Fixed 3.375% Conventional 15 Year Fixed 2.5% FHA 30 Year Fixed 3.125%
Our rates continue to be as much as .375% below the rates of our competitors. Rates are currently at 3 year lows, a GREAT time to be buying.
Recently it was another standing room only Home Buyer Seminar at the Hilton in Princeton. We had an amazing group of speakers including a Title Insurance Attorney, a Credit Reporting Expert, Real Estate professionals and myself. I particularly enjoyed the session regarding Dual agency and the importance of a buyer having a representative in the transaction, not an agent that represents both Buyer and seller. Visit www.HomeBuyer-Seminar.com for upcoming seminars. All attendees receive a $1,000 closing cost coupon.
For those that are looking to purchase property that needs work, we have several favorable programs that will allow you to purchase a property and we can provide additional $ for remodeling.
Real Estate Market
The New Jersey Association of Realtors recently released statistics for the Month of April. As we approach June, 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 4-2015||YTD 4-2016||Percent Change|
|New Listings||1,795||1,854||+5.0 %|
|Closed Sales||549||657||+ 19.7 %|
|Median Sales Price||$410,000||$415,000||1.2 %|
|% of List Price||96.3%||96.6%||+ .3 %|
|Days on Market||98||91||+ .3 %|
We did not see a proportional increase in median sales price even with a gaudy 19.7% increase in closed sales. This is even more puzzling with interest rates being as low as they are.
The market is balanced well. It’s a good time for both buyers and sellers.