The Purchase Market, Lower Rates and a Small Favor
NEWSFLASH #1: The housing market is not that strong so far this Spring. There is a lack of inventory in most markets and year-to-date sales are much below the historical average for home sales. Manhattan and Brooklyn continue to lead the way, mostly supported by foreign buyers and cash deals.
But, outside of these areas, the housing market continues to limp along. Well priced houses sell and good areas close to Manhattan with top schools are doing well. Everywhere else, not so much. Hopefully the improving weather and low interest rates (see below) will improve this. But, much like the very short King Crab season on Deadliest Catch, those of us in the residential housing businesses will not have much time to make “our quota” in a compressed spring/summer housing season.
NEWSFLASH #2: Interest rates since the beginning of May have fallen quite significantly due to strength in the bond market. Yields on the 10 year Treasury have fallen about .5% since January 1st from 3.0% to 2.5%. This has been mainly caused by the belief that the European Central Bank will be pumping more liquidity into their economies. It has also been helped by low inflation and Janet Yellin’s statements that the Fed will be keeping their rates low to support the economy. Right now, we are on the cusp of a short term refinance opportunity with 30 year rates hovering just above 4.0%.
FAVOR: If I have ever helped you or any of your clients with a loan or with some mortgage advice, I would greatly appreciate it if you could take 2 minutes to vote for me as your favorite mortgage broker (i.e. Dan Shlufman, Classic Mortgage). It is for the Jewish Standard, Reader’s Choice Survey and the link is: www.jstandard.com/survey. You do NOT need to be Jewish nor live in Northern NJ to complete this. Thank you!