September Mortgage Newsletter

Rates Trending Down
The Federal Open Market Committee (FOMC) led by Chairman Jerome Powell will be meeting on September 17-18. Predictions are for another rate cut of .25% after a recent rate cut on July 31st which was the first rate cut since December of 2008. This will have an immediate impact on borrowers that have interest rates indexed to prime such as commercial loan borrowers. As I have mentioned in the past, the prime rate does not necessarily have an immediate impact on Mortgage rates.

I have always felt 2 of the most important indicators for the Fed to consider are unemployment rates and inflation. Unemployment is near an all time low and inflation is in check. It seems that the global economy and the Trade war with China has made the Fed proactive in decreasing interest rates.

The first set of US Tariff’s on Chinese goods went into effect On Friday, September 1.US exports many products to China that will be hit with tariffs including Farm products such as Soya. US Farmers are the largest exporters in the world of Soya to China. The trade war will have a negative impact on our Farmers. Let’s hope the matter is amicably resolved soon.

Mortgage Rates Trending Down
Even though the 30 year fixed rate is at an amazingly low rate of 3.5%, rates are actually trending down! A strong indicator for mortgage rates is the 10 Year Treasury Note. The 10 Year note is near all time historical lows. We will most likely see rates at 3.375%, perhaps even lower.

As always, our rates our 1/8 to ¼ percent lower than many of our competitors. Here are our current rates:

30 Year Fixed Rate: 3.5%

FHA 30 Year Fixed: 2.875%

15 Year Fixed Rate: 3%

7 Year ARM: 3.5%

10 Year ARM: 3.75%

Real Estate Trends
The New Jersey Association of Realtors recently released the final stats through the end of July. Let’s take a look at some numbers for Single Family Homes in Central New Jersey which is a good snap shot for similar markets around the state.

2018 2019 Percent Change
New Listings 3,273 3,172 -3.1%
Closed Sales 1,709 1,656 -3.1%
Median Sales Price $472,400 $465,000 -1.6%
Days on Market 62 65 +4.8%
The above numbers are clearly a result of a healthy Real Estate Market. Since the last recession, there has not been a steep increase in prices in the state of New Jersey. While there is always room for correction, there doesn’t appear to be a chance for a “bubble” or a drastic reduction in Real Estate prices. With interest rates near all time lows and a healthy balanced market, this is a good time to buy or sell. A “win-win” for all.

Home Buyer Seminars
Good news, we will be sponsoring the popular Home Buyer Seminars facilitated by Central Jersey Real Estate Institute. You can find more information regarding the upcoming seminars including registration at www.HomeBuyer-Seminar.com. All attendees will receive a $1,000 closing cost coupon, a home buying workbook and free lunch. There were many speakers including a Title Insurance Attorney, Credit Reporting specialist, Foreclosure expert, short sales expert and myself. Be sure to check out video of previous seminars at www.HomeBuyer-Seminar.com . We would love to see you there. Feel free to invite your family and friends. Its not just for first time home buyers. Many participants that have previously purchased homes in the past find it helpful and recommend it to others that have already purchased a home and looking to purchase another in the future.

Vibha Singh

CEO

732-648-1754

NMLS ID 66034

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