January Update and Forecast
Interest Rates: Rates have been on a bit of an upward climb for the past month. This is due to a few things: 1) inflation has been stubborn and has remained higher than the Fed likes to see, but most of the inflation is in housing, (which includes rents) and in insurance. Most other pieces were below the Fed’s target of 2%. Next: Employment has remained strong. There are a lot of mixed signals in the employment report with most new jobs created have been for 16-20yr olds which is typically part time and seasonal and there are reports of job listings being posted in multiple markets since remote work is common, over stating available jobs. In another article just out today -The Wall Street Journal reported that 22% of jobs advertised are fake or not filled and are calling them “Ghost Jobs” again over stating the available jobs in the market. Inflation and employment are the two biggies the Fed is concerned with.
For rates this year most of the major players are now forecasting interest rates to come down to the low to mid 6’s this year for a 30yr fixed rate.
Market: Inventory is still an issue and upward pricing pressure remains, especially in the Northeast and Mid-Atlantic states. Most of the national forecasts have housing prices increasing between 4-4.5% for 2025 which is pretty similar to 2024’s actual numbers. While that doesn’t sound like a lot it does mean a $500,000 home today will likely be $520,000++ by the end of the year. Another way of saying that: A buyer is likely to make $1,600 a month in equity gains over the coming year on a $500k home… That makes up for a 7% interest rate, doesn’t it?
YES I am still in the Mortgage business and will still be here for years to come to assist your clients in getting a mortgage that is right for them.
If you are looking to purchase or refinance a home in NJ, please give me a call, I can also help you in all 50 states, CMG is licensed throughout the country.
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.RobertRauf.com
or my blog: http://activerain.com/blogs/rrauf
Cell (732)740-0175
RRauf@CMGhomeloans.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
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