February 2018 Mortgage Newsletter
Mortgage Rate Increase Alert
During the month of January, rates increased a full .25%. That does not happen very often. Last time it happened was immediately after the Presidential election in 2017. There is so much positive momentum for the economy, many economists are predicting Mortgage Interest rates will increase both in the short and medium term. Although I do agree that rates will increase, I don’t foresee a steep increase. It’s been many years since rates have been over 5.0%. Let’s hope that doesn’t happen.
Here are some interesting statistics from the National Association of Realtors:
30 Year Fixed Rates
That’s an increase of 1% in a period of 2 years. The above are national averages as reported by NAR. Our rates have been considerably less. Our current rates as of January 1st are:
Conventional 30 Year Fixed 4.0% APR
Conventional 15 Year Fixed 3.5% APR
FHA 30 Year Fixed 3.625%
There is more commentary regarding the recent tax changes. In expensive Real Estate Markets such as New Jersey, there will be an effect on prices. There will be a direct effect on the higher end market. Sales of Lower price ranged homes will continue to be well balanced since there is not much new supply.
The New Jersey Association of Realtors has published final numbers for 2017. Here are some numbers for New Jersey and a snapshot of Central Jersey:
New Jersey 2016 2017 % Change
Closed Sales 106,385 115,991 +9.0%
Days on Market 80 7.1 -11.3%
Median Sales Price $280,000 $280,000 0%
New Listings 176,621 178,756 1.2%
Closed sales are up a whopping 9%! It’s absolutely remarkable that median prices are the same considering the supply of New Listings is relatively flat and days on market are down. If the New Listings remain constant and closed sales continue, it will be interesting to see if Median Sales Prices increase.
Here is Central New Jersey:
Central New Jersey 2016 2017 % Change
Closed Sales 2,816 2,890 +2.6%
Days on Market 73 67 -8.2%
Median Sales Price $449,228 $455,000 +1.3%
New Listings 4,760 4,657 -2.2%
The above illustrates that Central Jersey is a reflection of the state statistics.
Free Upcoming Seminars
Last month we hosted an Investment Seminar for the first time ever. In addition to new comers, it was great to see some of our past clients attend the seminar. We are committed to hosting both the Home Buyer and Investment seminars on the 3rd Saturday of each month except for November and December. Attendees will receive a $1,000 closing cost coupon and lots of valuable information. This month both seminars will be on February 17th. For the Home Buyer Seminars, you can register at www.HomeBuyer-Seminar.com. The registration for the investment seminar can be done at www.NJRealEstateSeminars.com There are many very interesting topics including at the investment seminar:
Little Known Websites where you can find good deals.
All about Short Sales, Tax Sales, Foreclosures, Estate Sales, Distressed Sales and REOs.
How to use Retirement Funds to purchase Real Estate without paying penalties.
Flipping VS Holding
Title Issues as they relate to Foreclosures and Tax Sales
Real Estate Syndication
At the Homebuyer Seminar speakers provide valuable tools that assist in the Home Buying Process. Topics include Title Insurance, Pitfalls to avoid, how to get the best interest rates, all about Credit reports and much more. A free Home buyer workbook is provided to all attendees along with the $1,000 closing cost coupon. Reserve your spot today while there is availability.
NMLS ID 66034
NMLS ID 1541005
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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