Life is short - Buy a beach house!Latest list of NJ Shore Homes:VIEW SHORE HOMES
Market Mortgage Rate Update 6102018
Dated: June 11 2018
Views: 289
Rates have settled back into the mid 4% range for a 30 year fixed rate mortgage today (for borrowers with A credit).
It has been a bit of a see-saw the last two weeks with the political turmoil in Italy sending interest rates lower right after the Memorial Day weekend, and now settling in the mid range of the most recent high and the low of that Tuesday.
Overall economic numbers have been very strong, and growth estimates for the U.S. economy in the 2nd quarter are exceeding 4.0%. That would be a huge accomplishment considering there have only been about 25% of quarters since 1990 to reach 4%, roughly 26 out of 109 quarters, and we averaged 2% or less annual growth from 2009-2016.
Housing thrives with a robust economy, not a gang busters economy with 5-6% growth that is highly leveraged and racing towards a bubble.
Current 3% growth rates are very healthy. There isn’t too much leverage in the economy, but enough growth that wages will rise, and hard assets like real estate can appreciate.
What does this all mean? Rates are on the rise, mid 4’s, and rising.
As a comparison, six months ago a 30 year mortgage with A credit was 3.75%. So, there has been a significant move upward…
However, if the economy beats estimates, and the numbers continue to grow there will be more pressure on bond rates as the Federal Reserve will have to raise rates faster which will create higher mortgage rates.
Whether or not higher rates mean lower prices for homes or topped out value remains to be seen.
If the economy is growing and more people are working there will be more demand for homeownership.
The way it stands now we are in a sweet spot, rates aren’t too high, we have a very good economy, and inflation is tame.
This all bodes well for housing, especially if sellers ultimately succumb to the pressure of rising values and the threat of higher rates, and bring more inventory to the market.
-
If you’re on the fence about selling your house, now might be a good time to pull the trigger before rising rates cause home values to decline…
-
If you’re thinking about buying a house sometime soon, now might be the perfect time to get pre-approved and lock in your terms before rates move higher…
For more info visit: http://www.bondstreetloans.com
Latest Blog Posts
AMAZING LOCATION end unit condo located in the center of charming Ocean Grove downtown, 2.5 blocks to the beach and 5 blocks to Asbury! This bright and open layout condo features large eat-in
1904 Central Ave. West Belmar just listed!3 beds - 2 full updated baths - park-like backyard MOVE-IN ready spacious home with a park-like private backyard in sought after West Belmar! Only a 9
MOVE-IN Ready beach home with large fenced-in backyard in sought after West Belmar! Home features hardwood floors, Hunter Douglas shutters, living room, family or dining room, eat-in kitchen with
All information is believed to be accurate but is not guaranteed. Protected by Copyright© 2022 and is owned either by the Monmouth County Association of REALTORS; or by the developers of the software, Kunversion, LLC. All rights reserved. Each office independently owned and operated.
The New Jersey Real Estate Commission requires every licensed broker or salesperson with whom you list your property to give you a copy of this notice. The purpose is to help you comply with the New Jersey Law
The data relating to real estate for sale on this website comes in part from the IDX Program of Garden State Multiple Listing Service, L.L.C. and Keller Williams Realty East Monmouth. Real estate listings held by other brokerage firms are marked as IDX listing. Information deemed reliable but not guaranteed. Copyright © 2022 Garden State Multiple Listing Service, L.L.C. All rights reserved. This information is being provided for Consumer's personal, non-commercial use and may not be used for
