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The truth about the national interest rate increase is more statistically based than a reflection of our regional reality. What I mean by this is that the headline news covering a hike in mortgage interest rate does not accurately reflect what buyers are being quoted in the Northeast. Because of all the uncertainty, I decided to speak to a few active bank lenders to get the intel as to how the interest rate hike is affecting the New York City buyers.
If you have been reading about the housing market, you may have been put off or scared off by the sudden increase in mortgage rates, but the truth is that the lenders I have spoken to are not quoting buyers anywhere close to the average rate of 6.326%.
Alternative Loan Programs: Did you know that some lenders have access to alternative loan programs which can offset the higher interest rate...? Programs such as arms, leverage financing and asset lending are just a few that have a lower interest rate than the 30-year fix.
You might be surprised to find out that the increase is not as drastic as the headline news have recently covered. What I see here is a perfect buying opportunity as less buyers enter the real estate picture due to misinformation. Give me a call to chat about the real time updates of this market.
It is not uncommon for me to get calls from buyers looking for the needle in the haystack. I spent a lot of time speaking with people during the shutdown asking if foreclosures are going to be prominent in NYC and to find them access to these opportunities. This typically does not happen in a market like NYC.
Now with dramatic headlines like "a collapse in real estate" I still do not think we’ll be seeing foreclosures because the market is very different from the economic destruction of 2008. Since 2008, banks have tightened lending so only well qualified buyers can get a mortgage.
Here are a few more statistics as to why we are headed towards a more normalized market than a market crash:
Reach out to me if you have any questions whatsoever.