October Mortgage Newsletter

October Mortgage Newsletter

Affordability
According to the National Association of Home Builders, housing affordability is at a 10-year low. This is due to the combination of higher interest rates and increased building materials. Nationwide, in the past 12 months home prices are up 6% and income is up 2.6%. Here are year to date numbers for affordability of single family homes and Condo /Townhomes:

Single Family Index %Change
2016 142 +4.4%
2017 144 +1.4%
2018 130 -9.7%
Condo/Townhouse Index %Change
2016 176 +5.4%
2017 175 -0.6%
2018 159 -9.1%
Unfortunately, it is inevitable for affordability to have a negative impact on the Real Estate Market.

We have seen a sharp increase in Mortgage Rates in the last month. The 30 Year Fixed rate has increased .25% during the last month. As rates continue to rise, Adjustable rate mortgages will become more attractive to some home buyers. Here are our rates:

Conventional 30 Year Fixed 4.50% APR

Conventional 15 Year Fixed 3.75% APR

FHA 30 Year Fixed 3.875%

10 Year ARM 4.25%

7 Year ARM 4.125%

The New Jersey Association of Realtors released its report for Real Estate activity in the state of New Jersey for the Month of August. Here are some year to date (YTD) numbers:

New Jersey YTD 2017 YTD 2018 % Change
New Listings 131,313 132,316 +0.8%
Pending Sales 82,942 84,006 +1.3%
Closed Sales 77,600 78,356 +1.0%
Median Sales Price $280,000 $292,500 +4.5%
Average Sales Price $361,917 $370,443 +2.4%
Days on Market 72 64 -11.1%
Affordability Index 156 140 -10.3%
Look at the huge decrease in affordability. Other than the affordability index, all the other numbers seem to be associated with a well-balanced market. So, it’s a good time to be a buyer or seller.

This month we would like to present the popular Condo-Townhouse Market Segment. Check out Year to Date (YTD) numbers:

New Jersey YTD 2017 YTD 2018 % Change
New Listings 26,114 26,752 +2.4%
Pending Sales 17,367 17,561 +1.1%
Closed Sales 16,127 16,413 +1.8%
Median Sales Price $250,000 $257,000 +2.8%
Average Sales Price $319,538 $328,238 +2.7%
Days on Market 71 62 -9.1%
The Condo/Townhouse market segment is very similar to the overall market. It is well balanced. Good times for both buyers and sellers.

Although we don’t have any Home Buyer seminars scheduled for the rest of this year. We will start up again in January. You can find information about the seminars at www.HomeBuyer-Seminar.com Please feel free to reach out to me with any questions you have regarding the home buying process and we can discuss your unique situation and what Mortgage program would be best for you.

Vibha Singh

CEO

732-648-1748

NMLS ID 66034

Ambika Singh

Loan Officer

NMLS ID 1541005

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