When it comes to homebuying, knowing what you can afford should always be step number one. In today’s housing market, a real estate agent or seller is going to want to know if you’ve been pre-approved by a mortgage lender. But what does pre-approval really mean, and why is it so important? With rising home prices and high buyer competition, a pre-approval letter is crucial prior to making an offer. This year especially, being intentional and competitive are musts when it comes to buying a home. Benefits of a Pre-Approval Letter A pre-approval letter is the only way to know your true price range and how much money you’re able to borrow...READ MORE
The Fed didn't raise policy rates at this week's meeting but did signal a possible March hike. Markets are now pricing in up to 6 hikes in 2022. Economic growth accelerated by more than forecast in the 4th quarter, fueled by the rebuilding of inventories and a pickup in consumer spending. Fewer workers applied for unemployment benefits last week, a sign the job market continues to recover from the impact of COVID-19. Case-Shiller reports home prices surged 18.8% year-over-year in November, even as the housing market entered a normally slower...READ MORE
Crude oil prices surged to a 7-year high due to strong global demand and tight supply. Tensions in the Middle East and Russia added to the concerns. The housing market and larger economy are expected to enter a "new normal" in 2022 as the unprecedented market disturbances subside. Last week's initial jobless claims totaled 286,000, well above the 225,000 estimate. Continuing claims also rose to 1.64 million. Builders in the single-family housing market are facing growing expenses, which is causing a turnaround in sentiment to start the year....READ MORE
The Federal Housing Finance Agency (FHFA) recently announced increases to upfront fees for certain high-balance and second-home loans. These changes are in effect for loans delivered on and after April 1st, but will affect rates well in advance, so if you’ve been thinking of getting a new loan, we recommend you act now. What are upfront fees? Upfront fees are premiums added to the cost of a loan to account for higher risk scenarios. Though the name implies they are paid “upfront” when the loan is initiated, they are more typically reflected in the interest rate you pay. How much will this cost? The exact amount depends on your loan to...READ MORE
Multiple Fed members have come out supporting policy rate increases to curb inflation, beginning as early as March. Although the Fed doesn't set mortgage rates, expectations of upcoming Fed policy rate hikes pushed mortgage rates higher this week. Both consumer and wholesale inflation continue to be a problem. Consumer inflation rose 7% in December, its biggest gain since 1982. Purchase mortgage applications rose 2% last week compared with the previous week, as higher mortgage rates have homebuyers nervous. Refinance...READ MORE
In 2017 and 2018, Greenway Mortgage was awarded Best Mortgage Company in Monmouth County, NJ by the Asbury Park Press' Reader's Choice Awards.