November Market Newsletter

Mortgage Rates
After touching a low of 3.5%, mortgage rates are now approaching 4%. Although the Fed didn’t raise rates at the October meeting, the market is anticipating an increase in rates at the next meeting which will be in December. Yesterday at a capital hill testimony, Fed Chair Yellen basically confirmed a rate hike is forthcoming in December. She received push back from California Democratic Congressman Brad Sherman. Sherman suggested the Fed should wait until Spring. His amusing statement, “God’s plan is that things rise in the spring. And so if you want to be good with the Almighty, you might want to delay until May.” Lobbying against a rate hike include organizations such as Fed Up, a coalition of community groups organized by the Center for Popular Democracy in Washington.
The Fed is using definitive language regarding a rate hike. Now the discussion includes the amount of the rate hike. The consensus is an increase of .25%. Since this is widely anticipated, most likely the markets will have adjusted and it will not have a steep impact on markets.
October 3rd was the date the new TILA-RESPA Integrated Disclosure (TRID) was put in play by the Consumer Financial Protection Bureau (CFPB). During the next few weeks, we will see how this has affected the life cycle of a Real Estate transaction. Joe Kozoh, Team Leader of Keller Williams Cornerstone Realty states, “There might be a bump due to the learning curve. Anything that makes the transaction more transparent for the consumer is a good thing.”
Montgomery Mortgage rates are always competitive and continue to be .125% to .25% lower than the average market interest rates. The Home Buyer seminar was a big success last month. You can get more information and register for the next one at Be sure to see the testimonial video of the last seminar on the homepage. The seminars are helpful whether you are a first time homebuyer or you are a seasoned real estate buyer. There is a $1,000 closing cost coupon for all those that attend.
Real Estate Market
The New Jersey Association of Realtors recently released statistics for the Month of September. The New Jersey Real Estate Market in September remained stable. Here are some interesting numbers:

September 2014 September 2015 Percent Change
New Listings 14,559 14,953 2.7%
Pending Sales 7,256 8,114 11.8%
Closed Sales 7,625 8,531 11.9%
Median Sales Price $279,000 $287,500 3.0%
Avg Sales Price $361,156 $368,266 2.0%
% of List Price 95.8% 96.2% .4%
Days on Market 83 81 -2.4%
Homes For Sale 70,860 64,179 -9.4%
Months Supply 10.2 8.1 -20.6

Look at the sharp decline in inventory and the months supply. Combined with interest rates as low as they are, there should be a larger increase in the sales price. Certainly the low inflation numbers are one of the reasons the Fed has not increased rates. It seems that Home prices are set to increase. This is a good time to purchase a home, since home prices and interest rates are on the rise.
We have much to be thankful for. Enjoy the upcoming festive holiday season and a Happy Thanksgiving to all!