October Mortgage Newsletter
We have been seeing big swings in mortgage rates. The 30 year fixed rate got up to nearly 4% and it has come back down approaching close to 3.5%. The rates have been changing quickly whenever there is good or bad economic news. For example, there is a slowdown in manufacturing and the rates have been trending downward.
The key economic indicators have been mixed. Many are predicting an economic slowdown that will continue to drive mortgage rates lower. The unemployment rate is still very favorable. For the 3rd month in a row, in August the rate was an amazing 3.7%.
Most Real Estate Agents I speak with in the Central and Northern New Jersey markets have had a good year. Many are saying that a “shift” in the market is due. So, signals are mixed.
Properties Requiring Repairs
We have an array of products for properties that require repairs. We have programs for both owner occupied borrowers and investors. In both cases, we can provide financing for the purchase price as well as the cost of the repairs.
For owner occupants, rates are very low and the down payment requirement is as low as 3.5% with 100% financing for the cost of the repairs. The repairs can be as small as simple cosmetic or they can be large structural repairs and even septic replacements can be financed.
Whether you are a first-time investor or a seasoned investor, we have plenty of programs. You can finance as much as 90% of the purchase price and 90% of the cost of the repairs. We even have no income verification programs. So, there is a lot of flexibility.
Whether you are an investor or owner occupant, please call me to discuss the various different programs and the program that would be best for you.
30 Year Fixed Rate: 3.375%
FHA 30 Year Fixed: 2.750%
15 Year Fixed Rate: 2.750%
7 Year ARM: 3.250%
10 Year ARM: 3.375%
The rates are still very favorable as we head into the last quarter of the year. Still a great time to be a buyer.
New Jersey Real Estate Trends:
The New Jersey Association of Realtors recently released reports for August. Here are some numbers for New Jersey:
YTD 2018 YTD 2019 % Change
New Listings: 96,822 95,192 -1.7%
Closed Sales: 59,505 55,784 -1.7%
Median Sales Price: $315,000 $329,000 +4.4%
Avg Sales Price: $394,417 $406,644 +3.1%
Days on Market 64 64 0.0%
Affordability Index 130 125 -3.8%
Certainly nothing is alarming. If anything, it is a very healthy, well balanced market.
NMLS ID 66034
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
© Montgomery Mortgage Solutions, Inc. All Rights Reserved. NMLS ID 19111