LBI Real Estate Market Mortgage Rates Dropped

Long Beach Island NJ Real Estate Mortage Rates Dropped-Now What

Long Beach Island Real Estate

Last week saw a meaningful drop in the mortgage rates around the county. Of course, this means that mortgage rates in the LBI real estate market also dropped. The Long Beach Island real estate market is not that sensitive to mortgage rate movement in either direction, so it is doubtful that it will significantly impact buyer behavior, but this movement in the mortgage market may still have an impact on the local real estate market. Mortgage applications jumped last week on the welcomed news of a rate drop, and some of these national trends might spill over to Long Beach Island. There is pent-up demand in the LBI real estate sales market complicated by a lack of inventory and a higher-than-average cost of ownership. A softening in any of these conditions may trigger an increase in buyer behavior.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

LBI Real Estate Market Mortgage Rates Dropped

In the week following mortgage rates dropping by roughly half a percentage point, national mortgage applications rose by 2.5%. That is a rather significant jump, and it shows how pent-up demand will impact the real estate market nationally and on Long Beach Island. Many feel home prices will have to drop, but the data points to a different conclusion. Conditions for buyers in the LBI real estate market are challenging right now. Inventory is still very low, and demand is high. The high cost of lending is another barrier right now, and as that may decrease, many buyers will likely engage in the market. Prices will stay the same or rise if we see an increase in buyer activity. All buyers in the LBI real estate market should evaluate the total cost of ownership, but in the current climate and if rates and home prices change. A higher sales price may well offset a lower monthly mortgage rate if demand increases. In other words, the actual cost of owning a home in the LBI real estate market may remain unchanged if prices rise as rates drop. I know some buyers are waiting for rates to drop before they buy. While that makes sense on the surface, it may cost much more in the long term. Assuming prices stay the same or rise, it would be better to buy now, let the market rise, and refinance when rates are lower. The rate can change, but the home’s purchase price will not!

Long Beach Island NJ Real Estate Mortage Rates Dropped-Now What

As with any market, nobody can predict the top or bottom. The best strategy in the LBI real estate market is understanding the LBI real estate market. Knowing what determines value on Long Beach Island and buying a sound asset gives you the best chance of preserving your investment. Building a new home is still the best way to beat the market, as this gives you an immediate equity position. Buying a knockdown today, building new to establish an equity position, and refinancing when rates drop is a recipe for success in the Long Beach Island, NJ, real estate sales market. For more information about Long Beach Island or about the LBI real estate market please do not hesitate to contact me.

By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market