Mortgage Rates, where are they headed and what is in store for us for the next few months
September 25, 2009
Report from our mortgage consultant, Mike Loglisci on the current mortgage market:
Existing Home Sales were reported at 5.10 million, less than expectations of 5.35 million and the first decline in five months. However, there was some good news in the report, as inventories of unsold homes fell to an 8.5 month level…the lowest inventory level seen since April 2007.
As expected, the Fed did not touch interest rates, but the statement was a market mover. The Fed said they are going to draw out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. This tells us a few things – there was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and yesterday’s statement is a nice way of the Fed saying “no.” They will not be buying more, but what they will do is attempt to provide a smoother transition to normal market conditions. It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher…most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise.
So what does this mean for rates in the short term, and why did the Bond market rally on this news? The rally was more than likely due to the headlines from the media which said that the program was “extended”. The markets reacted positively by thinking that the program would stay in place as is for three more months, which would have included more Fed buying. But the gradual reduction in purchases has to bring us to higher rates. The Fed has been buying about $25B per week, but the new plan to drag out these purchases over a longer period of time, means that they will be reducing both the frequency we and amounts of their purchases. This will cause higher levels of volatility, as the Fed will be purchasing less often and less consistently. So will see a gradual rise in rates over time…and we must be sure that this message gets out to our clients and referral partners. While we won’t be seeing a sudden jerk higher in rates when the Fed buying program comes to an end, it is clear that rates are now going to be on a gradual rise…and waiting to purchase or refinance will mean a higher interest rate.
In this morning’s economic news, Initial Jobless Claims fell by 21,000 in the latest week to 530,000, which was below expectations of 550,000. While this was a better than expected read, it’s still not exactly good news regarding the overall employment situation. Think about it…530,000 more people applying for unemployment benefits for the very first time really isn’t something to get too excited about. Bonds worsened initially on the headline, but have since moved back to positive territory.
If you are looking for a mortgage, please call Mike Loglisci at cell 609-338-9001. Let The Petridis Team help you with find your next home here in Atlantic County.
Open House 307 W. Brigantine Ave. Brigantine NJ 08203 Saturday, 9/26/09 from 11am to 1pm - Offered at $1,475,000
September 25, 2009
New Construction - Ocean Views
Open House at 2201 Revere Blvd., Brigantine NJ 0203, Saturday, 9/26/09 1pm to 3pm A-Zone location offered at $899,900
September 25, 2009
By far, one of the best streets in Brigantine. Revere Blvd offers a serene location for your next Summer Brigantine Vacation Home. Don’t’ miss this spectacular 4/5 Bedroom, 3.5 Bath home in the heart of the A-Zone on one of Brigantines most desirable streets. Two master suites with Walk in Closets, Bonus room on 3rd floor can be used as a 5th bedroom or Media room with room for expansion! Imported Santos Mahogany Solid Hardwood on 1st and 2nd Floors. This home is situated on a corner 80 X 90 lot with fenced in yard and room for a pool. Upgraded appliances and granite coiunter tops with center islands, surround sound in family room. Large deck for entertaining, close to the beach with plenty of parking, oversized garages to accommodate large SUV’s or Boat.
JUST LISTED - 307 W. Brigantine Ave. Brigantine NJ 08203
September 15, 2009
New Construction - Ocean Views
This is the ultimate in prestigious living! For those accustomed to the very best, this home is fully appointed with 5 Bedrooms, 4.5 Baths Beach Block with Ocean Views! Amenities include Two Kitchens with Granite Countertops, Fabulous Master Suites with WIC and Tiled Baths, Custom Crown Moldings, Elevator, Stunning Two Story Foyer with Custom Wood staircase and wrought iron railings. Full Size Bar in Living Room, large interior and exterior living areas to entertain your guest and family. Paver Driveway and patio, Front Decks with ocean views!
Follow the link below to see the full listing detail:
www.southjerseyshorehome.com/307wbrigantineave
Short Sale Opportunity - Great Buy, Reduced to $499,000, One Block to the Beach! 6 BR, 3.5 BA
September 2, 2009
Short Sale - Beginning process for Foreclosure
Short Sale opportunity here for a great buy! Investor Alert!
A-Zone corner home wtih Courtyard & 2 Car Garage on a 90 x 100 lot. This home is only 1.5 blocks to the beach and located in the center of town. Gas heat , Central air, Family room with built-in Fireplace, Dining room, 6 Bedrooms. This is a very large home that can accomodate many guests. Fully Furnished(see inventory lsit) Has great rental income in the past few years. This listing will need third party approval. Bring all offers.
Short Sale opportunity here for a great buy! Investor Alert!
www.southjerseyshorehome.com/2101wbrigantine
Mortgage Rates as of 9/1/09 from Harry Slifer - Harleysville National Bank
September 2, 2009
HARLEYSVILLE NATIONAL BANK
732 NORRISTOWN ROAD
MAPLE GLEN, PA 19002
FOR MORE INFO PLEASE CONTACT:
HARRY SLIFER
W 866-819-6302 ext: 3195
Cell 215 990 9262
email: haslifer@hncbank.com
DATE: 9/01/09
30 YEAR FIXED CONFORMING
4.625% + 3.00 PTS * 60 DAY LOCK ( LOCKS TO 1 YEAR AVAILABLE )
5.00% + 1.00 PTS * RATES ASSUME 80% LTV + 740 FICO SCORE
5.25% + 0 PTS * MAXIMUM MORTGAGE AMOUNT OF $417,000
* 40 YEAR TERMS AVAILABLE
* INTEREST ONLY AVAILABLE
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30 YEAR JUMBO PROGRAMS
30 FIXED: 6.00% +.50 PTS. * 80% MAX LTV TO $1,000,000
* 60 DAY LOCK
3/1 ARM: 4.75% + 0.50 PTS. *75% MAX LTV TO $1,000,000
5/1 ARM: 4.75% + 0.50 PTS. * 90 DAY LOCK
7/1 ARM: 5.125% + 0.50 PTS.
10/1 ARM:5.625% + 0.50 PTS.
STATED INCOME/NO INCOME VERIFICATION LOANS AVAILABLE AT SLIGHTLY HIGHER RATE
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FHA/VA
30 FIXED: 4.625% + 3.00 PTS. * 96.5% MAX LTV TO $ 362,790.00
5.125% + 0.00 PTS. * Up to 6% Seller Assist
* NO MAXIMUM VA LOAN AMOUNT
* More Lenient Credit Score Guidelines
OTHER PROGRAMS:
3 YEAR FHA ARM – Qualifies at Start Rate !!
3.75% @ 2.00 Pts
Seller Assist up to 6%
1 % Annual Cap & 5 % Lifetime Cap
FHA Credit OK- No FICO Score Add ons
Looking to purchase a home here at the shore, please call The Petridis Team from Prudential Fox and Roach Realtors direct at 609-377-4023.
See this Brigantine Home Listing
To search for a property for sale in the area click here: Search Local MLS Listings
Let's get together and talk about your >South Jersey experience. If you are a buyer, we can help you find the perfect home or condo for you in the South Jersey Shore Home area. If you are selling a home we can simplify the process for you. We can prepare a Comparative Market Analysis - CMA for your home and let you know what your home actual home value is in this market. Call Peter or Beverly Petridis at the office 609-264-7304, or on our cell phone 609-377-4023. We will set-up a time that is easy and convenient for you to meet.