Articles on Mortgage Applications

New Loan Limit May Affect NYC Buyers

Loan limits affecting NYC luxury real estate

The stories were bleak. Families owing more than their homes were worth; foreclosure signs on lawns becoming a common sight. In response to the subprime mortgage crisis that busted the real estate bubble back in 2008, the government passed legislation to get the housing industry moving again--but some of that legislation is set to expire soon.

As always, New York City is positioned to be an exception, and the wrinkle of impending national policy affecting the size of government insured-loans will have a disproportionate impact on buyers looking at apartments for sale in Manhattan and in other high-cost metropolitan areas.

With the government-loan limit to be reduced by around $100,000 as of October 1st, hundreds of real-estate buyers from the suburbs and city will be forced to either come up with a larger down payment, or face the prospect of signing “jumbo” loans at the real estate table. An appraisal reported in New York Times reports that the new limit would affect about 7 percent of transactions in Manhattan.

After Tough Week, New Home Mortgages Surge Back

dollarIn the week ending July 3, mortgage rates rose 10.9%, more than making up for the feeble previous week. More details (and more encouraging figures) here: Mortgage applications rebound.

Demand for mortgages to buy homes and refinance loans bounced from seven-month lows last week, with average 30-year borrowing rates unchanged, the Mortgage Bankers Association said on Wednesday. The industry group's total loan applications index rose a seasonally adjusted 10.9% to 493.1 in the week ended July 3, after slumping the prior week to the lowest level since November.