New Jersey Mortgage Rates and Outlook

Like most states, New Jersey did not come out of the economic turmoil of the last three years unscathed.  Despite low mortgage rates in New Jersey, overall median home values fell 12.4% across New Jersey over the last three years.  Foreclosure rates rose and houses languished on the market.

The New Jersey housing market can be divided into two segments: North Jersey which includes part of the New York City Metro Area, and the central and southern portions of the state which include part of the Greater Philadelphia Metro Area.

In juxtaposition to most other parts of the country, 2009 was not a terrible year for the housing market in South/Central New Jersey. Home sales were stable, and while house prices fell, the losses were in single digits.  The amount of time it took to sell a house remained approximately the same.  The market actually grew slightly in the second half of the year.

In contrast, home values in Northern New Jersey took a beating, falling 5.5% in the fourth quarter of 2009 alone.  The median home value is now $434,000, off more than $100,000 from 2006 peak prices.  Proximity to New York City has hurt North Jersey more than other portions of the state because the run-up in home values was more exacerbated during the bubble years and the market is slower to correct.  Homes on the lower end of the pricing spectrum are selling relatively quickly, suggesting that cheaper houses are now properly valued.

There are several drivers behind the improving market, among them are low current mortgage rates,  government programs such as the first time home buyer tax credit, reduced home prices, and increased housing demand.  It is difficult to predict what will happen in New Jersey once government support is removed from the housing market.  At the very least the Federal Reserve pledged to keep interest rates low in the near term until the economy exhibits more stability.  Most analysts agree that in order for a sustained recovery to occur, unemployment must decrease so that consumers feel more confident purchasing a home.

Despite the challenging market New Jersey real estate remains a superb long-term investment.  New Jersey real estate has been an exceptional long-term investment.  Despite the set-backs of the last three years, New Jersey home values increased 6% over the last five years according to the Federal Housing Finance Agency.  The median home price has risen 129% since the agency started keeping statistics in 1991. Total Mortgage Services offers some of the most competitive mortgage rates in New Jersey:

* All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice. All rates assume a credit score of 740+ and are subject to change. Rates are quoted from Totalmortgage.com as of 3PM on Thursday, February 25, 2010.

Total Mortgage Services has been providing the New Jersey market for more than a decade.  From Asbury Park to Cape May, from Bayonne to Cherry Hill, Total Mortgage provides the best combination of rates, customer service, and customized lending solutions you will see anywhere.  To speak to one of our loan specialists, call 888-868-2509 today.