Mortgage Rates
Contrary to projections, Mortgage rates have declined after the Fed increased the interest rate. In my last Newsletter, I mentioned that it was a strong possibility that mortgage interest rates would not increase. Although I strongly feel that interest rates will continue to be steady for the short term, they can go up at anytime there is a sharp increase in indicators such as inflation and or if there is a positive shift in key economies around the globe. In fact, it seems the US is committed to maintaining a balanced global economy.
For those that have adjustable rate mortgages indexed to Libor or Prime, you should consider refinancing into a fixed rate mortgage or into a longer termed ARM then you currently have. The Libor is up significantly and projections are that the prime will increase by ½ to ¾ by the end of the year.
Currently our rates for Home Buyers are as follows: Conventional 30 Year Fixed 3.375% Conventional 15 Year Fixed 2.5% FHA 30 Year Fixed 3.125%
Our rates continue to be as much as .375% below the rates of our competitors. Rates are currently at 3 year lows, a GREAT time to be buying.
Recently it was another standing room only Home Buyer Seminar at the Hilton in Princeton. We had an amazing group of speakers including a Title Insurance Attorney, a Credit Reporting Expert, Real Estate professionals and myself. I particularly enjoyed the session regarding Dual agency and the importance of a buyer having a representative in the transaction, not an agent that represents both Buyer and seller. Visit www.HomeBuyer-Seminar.com for upcoming seminars. All attendees receive a $1,000 closing cost coupon.
For those that are looking to purchase property that needs work, we have several favorable programs that will allow you to purchase a property and we can provide additional $ for remodeling.
Real Estate Market
The New Jersey Association of Realtors recently released statistics for the Month of April. As we approach June, let’s take a look at some year to date numbers for Single Family Homes in Central Jersey and how these numbers compare to last year.

We did not see a proportional increase in median sales price even with a gaudy 19.7% increase in closed sales. This is even more puzzling with interest rates being as low as they are.
The market is balanced well. It’s a good time for both buyers and sellers.

Mortgage Rates
Mortgage rates have not increased after the Fed raised the discount rate in January. The Fed did not increase rates in the subsequent March meeting and there are mixed reports whether the Fed will increase rates in the April meeting. Although there was a slight increase in Unemployment, the economic climate in the US is stable to positive. Unfortunately that is not the case overseas and that seems to be a major cause of apprehension for the policy makers in the US.
Even if the Feds increase rates, I don’t foresee a major spike in mortgage rates anytime soon. With interest rates near 3 year lows and the robust spring market, it is a seller’s market in most of New Jersey. Bidding wars are not uncommon and it is a source of frustration for many buyers as well as Real Estate agents.
Sellers should get their house on the market as soon as possible to take advantage of a favorable seller’s market. Buyers should move quickly and aggressively with their offers. Be sure to submit a pre-qualification letter with the offer.
For those that are existing home owners and considering moving to a new home, consider renting your existing home instead of selling it especially if you have a low fixed rate mortgage. The rental market is robust and mortgage rates are near all time lows. Borrowing at the current low rates can be advantageous for those considering renting their current residence. Discuss the pros and cons with your Real Estate agent and let me know if you would like to discuss options with me.
We are sponsoring a Blood Drive on May 7th at our office. All Donors that attend and their family members will be treated to a Barbeque and there will be lots of give aways. Please register on our site at www.MontMtg.com We hope to see you there!
We are hosting another Free Home Buyer Seminar on April 23rd at the Hilton in Princeton. All attendees receive a $1,000 closing cost coupon and there is lots of valuable information. The seminar routinely fills up quickly so register soon at www.HomeBuyer-Seminar.com Speakers including a Title Insurance Attorney, a Credit Reporting Expert, Real Estate professionals and myself.
Currently our 30 year fixed is 3.375% and interest rates for super conforming are at 3.5%. Our rates continue to be as much as .25% below the rates of our competitors. Rates are near all time lows, a GREAT time to be buying.
Real Estate Market
The New Jersey Association of Realtors recently released statistics for the Month of February. As we approach May, let’s take a look at some year to date numbers for the state of New Jersey and how these numbers compare to last year.

Although it’s too early in the year to looking for trends, its nice to know that stats are flat compared to last year and the trend is toward a positive market.
Looks like we are in the midst of healthy Real Estate Market! That’s good for Buyers, Sellers and all parties associated with a Real Estate transaction.

Mortgage Rates
Happy New Year! After several years of near zero interest rates, the Fed finally pulled the trigger and raised rates. Although it did not have an effect on Mortgage interest rates, it will affect rates indexed to prime such as home equity lines of credit and commercial lines of credit. Markets project the Fed will continue to raise the rates during the course of this year another percent or so.
The Fed has been purchasing approximately $25 Billion dollars per month Mortgage backed securities (MBS). They are using funds that have been coming back from MBS they purchased in the past and they have been reinvesting it right back into buying more MBS. This has stabilized mortgage rates. Otherwise we would see a huge increase in interest rates.
Even if the Fed increases the rates another percent, I would be very surprised to see mortgage rates over 5%. Oil prices continue to be low, gold is off its high and inflation is not at the Fed target of 2%.
Currently our 30 year fixed is 3.75% and interest rates for super conforming are at 3.875%. We continue to be as much as .375% below the rates of our competitors. Rates are still extremely attractive for home buyers.
The new TILA-RESPA Integrated Disclosure (TRID) that was put in play by the Consumer Financial Protection Bureau (CFPB) in October continues to be problematic in Real Estate transactions. Closings have been delayed as lenders are getting acclimated to changes. Fortunately we have adapted our processing and have been able to integrate it into our work flow.
You can register for our next Home Buyer Seminar at www.HomeBuyer-Seminar.com 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 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 November. As we get close to the end of the year, lets take a look at some year to date numbers for the state of New Jersey.

The number that jumps out is the increase in closed transactions. With a big number of 12.6%, you would think that there would be a significant increase in average sales price. That’s not the case. Although a bigger increase in sales price would be nice, this is a sign of a healthy market that is in balance. If demand continues like this, an increase in sales price is inevitable. Another sign of a healthy market is the pending sales number. This shows that there is a strong pipeline of transactions going into 2016.
Looks like it’s a good time to be a buyer or seller. Just in case there is an increase in interest rates and demand remains steady, buyers should buy their homes soon.
Looking forward to a healthy Market in 2016!

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 www.HomeBuyer-Seminar.com 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:

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!

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:

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.

Mortgage Rates

Just when I thought rates were going to cross 4% and head to 4.5%, they are back down to 3.625%. It’s a great time to lock in a rate as the consensus is that the Fed will be raising rates soon. With unemployment at 5.3 nearly 50% of its recent peak a few years ago and the US economy doing well, the pundits are all predicting the Fed will hike rates as soon as this month.
Continue reading September Mortgage Newsletter →

July Mortgage Trends and Real Estate News
The home selling season is well upon us, which means it’s time to take a look at the recently released New Jersey Association of REALTORS statistics. The most recent information available, which is for June, shows some surprising changes in the statewide market over last year. There were 13,545 new listings added, which is a 6.6% increase over the previous year’s 12,710. There was also a 2.5% increase in the average sales price of single-family homes, which was $407,211, compared to the previous June selling price was only $396,182 on average.
There were some other changes as well, with the number of homes for sale showing a bit of a decrease with 46,522. For the same period last year, there were 49,539, which shows a 6.1% decrease. The month’s supply of homes also decreased to 8.9, which is 16% lower than the 10.6 for the previous June.
Central Jersey
In Central Jersey, things are still looking good, though there have been some considerable changes compared to the statistics for the state. There was a significant jump in the number of closed sales for the month, which increased 40.2% over the same period last year. Year-to-date also saw an increase of 17.5% over last year as well. The number of new listings also increased by 1.1% over June of last year, while the number of days on the market saw a 4.3% decrease to 66 days. The current inventory also saw a slight 0.2% decrease over the previous year, with the month’s supply dropping to 8 for a 9.1% decrease over last June. The median sales price also dipped by 4.8%, dropping from the previous June’s $455,500 to $433,500 last month. However, that is still above the median price for the state overall.
Condos and townhomes took a bit of hit over the previous month, with new listings dropping 2% compared with June of 2014. The median sale price also dropped to $247,000, which is a 9.5% decrease from the previous year. There was also a 16.3% increase in the number of homes available, taking the month’s supply up 14% to 4.9.
Mortgage Rates
Mortgage rates are still relatively low, especially considering that they were expected to rise fairly quickly. This may be due to the adjustment of first quarter numbers that occurred, which led to some rather unfavorable responses from Wall Street. However, the actual corrections, which were released to display a bit of a tightening in the economy, were only very minor blips overall. Even with the correction, there is no evidence that there is any turn for the worst expected in the market – in fact, the Federal Reserve isn’t even showing any indication that they plan to raise the interest rates over the summer as they were expected to do. The latest projections actually show that the current rates are expected to remain the same until around September.
Currently our rate is hovering around 3.875% with no points. Our lowest rates this year were around 3.375%. So rates are approximately .5% above our lowest rate of the year.

Single family home housing data for the month of March was released by the New Jersey Association of Realtors providing us a snapshot of the prime spring selling season. Statewide, pending sales, those with contracts not yet closed were up 17.4% in March compared to March 2014 while closed sales were up 13.3%. New listings increased by a healthy 8.4% margin, year over year.
Continue reading March Housing Data →

Private Mortgage Insurance can add hundreds of dollars to your monthly mortgage payment. So, how can you avoid paying for it at all? Before we discuss tips on ridding yourself from this financial burden, let’s review what Private Mortgage Insurance (PMI) is, and why so many lenders require it on their loans.
Continue reading How to Avoid PMI →

How much can I afford for a monthly mortgage payment? Even the most financially astute or seasoned homebuyer will question the affordability of a monthly mortgage payment. Often when I pre-approve a buyer, they are surprised at the amount and question if they have the financial worthiness to afford the monthly payment. Continue reading 5 Years you will grow – buy as much as you can →

5 Tips to Selecting a Mortgage Lender
Courtesy of Montgomery Mortgage Solutions, Inc.

Home ownership is the American Dream. Unfortunately, getting a mortgage these days can be a real nightmare. To help keep the stress of the mortgage process at a minimum, be sure to choose your lender carefully. Some offer a relatively easy process; while others do not.
Continue reading How to Select a Mortgage Lender →

Data from the New Jersey Association of Realtors for August revealed a slight steady-as-she-goes tally with some softening in closed sales compared to the same time last year. Statewide, sales of single family homes fell from 7,498 in August 2013 to 6,768 in August 2014. New listings for single family homes rose slightly by 2.4% to 10,316 homes while pending sales, those with contracts not yet closed, also reported a slight increase by 1.4% to 6,012.
Continue reading New Jersey Market Update →

Interest rates have remained near current levels since as far back as mid-May which makes more buyers eligible for financing. However, the low rates can’t produce more inventory as July home sales are down -7.2% from the same time last year, this according to the New Jersey Association of Realtors. Let’s take a look at this month’s numbers and dissect them for you.
Continue reading Real Estate Report →

Real Estate Report
Interest rates have remained near current levels since as far back as mid-May which makes more buyers eligible for financing. However, the low rates can’t produce more inventory as July home sales are down -7.2% from the same time last year, this according to the New Jersey Association of Realtors. Let’s take a look at this month’s numbers and dissect them for you.
According to the report, single family home sales fell -7.2% to 7,154 units in the state while the median single family home price stabilized at $345,000. For all properties in New Jersey including condominium/townhome and adult communities, the median sales price actually increased 1.6%. The demand is certainly there it’s simply that lower inventory is keeping some home buyers on the sidelines.
Compared to July 2013, new listings for single family homes throughout New Jersey increased by 8.4% to 11,971 from 11,040 and pending sales, those with contracts not yet closed, tallied 6,549 for July 2014 compared with 6,421 last year, for a 2.0% bump. The number of days it takes to sell a typical home in New Jersey fell yet again from 80 days to 72, representing a 10% drop, a rather remarkable number and available inventory shrank as well by -3.9% to a 9.8 month supply of existing single family homes for sale. The town home and condo markets fared in the same manner, with 2,068 units sold and days on market fell by -17.6%, continuing this trend.
Central Jersey Data
Here in central New Jersey, new single family listings increased by 14.1% compared to July of 013 while the number of closed sales fell to 312 homes, a -17.5% drop. There are more listings in July of 2014 but the demand is still strong. The median sales price for a single family home rose yet again from $477,500 to $520,000 for an 8.9% gain. It’s not taking very long to sell a single family home either as the average number of days it takes to sell a listed home fell to 62 days from 67 in July of 2013.
Rate Watch
The national economy is still showing continued signs of gradual strength. The Q1 GDP number actually fell by -1.1% yet the Q2 number showed a 4.0% rise for a 5.1% change. That surprised many economists and the initial Q2 reading was thought to have been some sort of an anomaly but the report was confirmed when the revised GDP account actually rose 4.2%.
This along with fewer weekly jobless claims along with a continued increase in home values nationally should cause rates to rise rather than remain neutral. That’s because investors are paying more attention to geopolitical events in Ukraine and the Middle East and putting more funds into lower-yielding yet safer U.S. Treasuries and mortgage bonds keeping mortgage rates low.
And speaking of mortgage bonds, the Fed announced another reduction in the monthly QE stimulus and announced there will be no indication of an extension of the program. The Fed is currently buying $25 billion in Treasuries and mortgage bonds with the final phase out due in October. So far, investors have paid little attention to the ultimate end to the program which has helped keep rates so low for so long. Until worldwide skirmishes subside it’s quite possible interest rates will remain in their current range well into Q4.