Mortgage Rates
At the much anticipated meeting middle of September, the Fed decided not to increase the discount rate. This was expected outcome by most of the forecasters. So the market did not move much. Our 30 year fixed rate is hovering at 3.625% and it has been relatively stable. The next fed meeting will be at the end of this month. There is no meeting in November.
Mortgage lenders are bracing for new disclosure documents required by the Consumer Financial Protection Bureau (CFPB). Although there is some apprehension, I feel it is always good for a consumer if they have as much information as possible, presented in a simple manner so that they can make an informed decision. October 3rd was the date the new TILA-RESPA Integrated Disclosure (TRID) is applicable.
Keep in mind that we do have programs that will allow you to purchase a home and renovate it. So if you find a property that needs a little work, don’t be afraid to acquire it especially if you are getting a good deal. Obviously these loans do require more paperwork such as construction cost estimates from licensed and insured contractors.
Montgomery Mortgage rates are always competitive and continue to be .125% to .25% lower than the average market interest rates. We will be sponsoring a Home Buyer Seminar at the end of this month in Princeton. You can get more information and register at www.HomeBuyer-Seminar.com Be sure to see the testimonial video. The seminars are helpful whether you are first time homebuyer or you are a seasoned real estate buyer.
Real Estate Market
The New Jersey Association of Realtors recently released statistics for the Month of July. The New Jersey Real Estate Market in July was HOT! Check out these numbers:
| August 2014 | August 2015 | Percent Change | |
| New Listings | 13,279 | 13,791 | 3.9% |
| Pending Sales | 7,518 | 8,722 | 16% |
| Closed Sales | 8,611 | 9,423 | 9.4% |
| Median Sales Price | $308,000 | $310,000 | 0.6% |
| Avg Sales Price | $392,871 | $387,987 | -1.2% |
| % of List Price | 96.4% | 96.7% | .3% |
| Days on Market | 76 | 74 | -2.6% |
| Homes For Sale | 71,042 | 64,273 | -9.5% |
| Months Supply | 10.4 | 8.1 | -19.2 |
With the number of sales up sharply, its surprising to that there is a slight decline in the average sales price. All of the other numbers are in line with a very stable market. New Jersey housing numbers do not justify the raising of interest rates. It will be interesting to see what the Fed does at the meeting at the end of this month.
I do have access to many other statistics I can provide to you. For example, I can provide you with statistics of a specific type of property ie condo, townhouse, Adult Community, etc. or I can provide statistics of specific towns. Please let me know if you would like to see a specific report and I will send it to you promptly.