August Mortgage Newsletter

Rates On The Rise
The Feds raised the rates .25% two times this year and it was the seventh rate increase since 2015. 2 more rate increases are forecasted for this year. One of the big concerns for the economy is the increasing budget deficit. That number is going to eclipse 22 Trillion and the Treasury department will be increasing the size of bond auctions in the coming months.

One of the most important economic indicators for Mortgage rates is the 10 Year Treasury Note. Last year there was a budget deficit of $800 Billion. With the continued increase in budget deficit, that puts pressure on Treasury prices and rates can go higher.

Mortgage rates were stable during the month of July. The housing market in New Jersey has been robust and the strength of the economy is a reason for this even with the increase in mortgage rates. New construction is increasing and this is another good sign of a healthy market.

Inventory has been consistently lower and home prices continue to increase. Fortunately, the increases in the state of New Jersey have not been at a fast pace and it looks like we are not in danger of creating a bubble. Again, another sign of a healthy, well balanced market.

Currently our rates are approximately .125% higher than last month. We feel that rates will be stable through the end of the summer. Here are our current rates:

Conventional 30 Year Fixed 4.375% APR
Conventional 15 Year Fixed 3.75% APR
FHA 30 Year Fixed 3.75%
10 Year ARM 4.125%
7 Year ARM 4.0%

Please keep in mind that rates are subject to change based upon market conditions.

The Free Home Buyer Seminar is on hold through the end of September. All attendees receive a $1,000 coupon, a free 125 page workbook and get information regarding the entire life cycle of a Real Estate Transaction. Speakers include a Real Estate Attorney, Credit Reporting Expert, Real Estate Professional, Title Insurance Attorney and Home Inspector. You can see the schedule and details at

Vibha Singh
NMLS ID 66034

Ambika Singh
Loan Officer
NMLS ID 1541005
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2230 Route 206 Belle Mead, NJ 08502
Phone: (908) 359-2410 Rate Hot Line: (908) 420-3655 Fax: (908) 359-3929