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
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:
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!