May Mortgage Newsletter
The first quarter numbers are in for the economy and according the Bureau of Economic Analysis, the Gross Domestic Product grew by 3.2%. The Dow Jones poll of Economists had the forecasted growth at 2.5%. This was the first time since 2015 that the first quarter GDP exceeded 3%. Keep in mind, at the beginning of the year, we had a lengthy Government shut down that lasted more than a month.
Unemployment numbers are the lowest they have been since September of 1969. Unemployment is at 3.7% and predictions are that they will continue to decrease. Good unemployment contributes to positive consumer confidence.
There continue to be suggestions of a slowdown in the economy and there are those that feel there may be a bubble. I don’t see it, especially in the state of New Jersey. The growth has been at a healthy pace particularly in the Real Estate Market.
There seems to be an increase in inventory of higher priced homes. Perhaps this is the immediate effect of the changes in the Income tax rules. Although I don’t have a formal study, a quick look at our closed pipeline and there are less H-1 loan applicants. This could be due to the uncertainty of immigration rule changes on the horizon.
Our 30 Year Fixed rate is the same as it was a month ago.
Conventional 30 Year Fixed 4.0% APR
Conventional 15 Year Fixed 3.5% APR
FHA 30 Year Fixed 3.5%
10 Year ARM 4.125%
7 Year ARM 4.0%
I was perusing historical interest rates published by Freddie Mac. The lowest rates we have had in the past several decades were the week ending 11/21/2012 and the 30 year fixed rate was 3.31%. Week ending October 15, 2018, the rate was at 4.94%. Week ending March 28, 2019, the rate was 4.06%. Its pretty amazing that interest rates are within ¾% of the all time low. That’s phenomenal and wonderful news for Home Buyers and sellers.
NMLS ID 66034