How the Local Housing Market is Affecting New York Mortgage Rates
The U.S. housing market has been going through incredible ups and downs ever since the crash in 2007, though local metropolitan markets are all experiencing their own varying levels of success and struggle. New York is no exception, and being aware of the current housing climate in the city is the key to understanding New York mortgage rates and whether or not now is the time to finance a home.
We interviewed a representative from PenFed (Pentagon Federal Credit Union) to get their take on current New York mortgage rates and how they’re being affected by the overall condition of the local housing market.
New York Banking Rates: Home prices are at an all-time low, but people are still reluctant to buy in the wake of the foreclosure crisis. How does this affect mortgage rates in ?
PenFed: I am not sure that people are reluctant to buy due to the foreclosure crisis. The mortgage market has changed. The economy has changed. The caution that borrowers are exercising is based upon their employment. If they are confident in their employment it is more likely but there are less loan programs that make it “easy.”
New York Banking Rates: Do you expect home values to remain low or will they start rising to pre-recession levels soon?
PenFed: Home values across the country have pockets that were never affected and remained stable, and then other areas where they are still declining. I don’t see values returning to “pre-recession” levels anywhere; nor do I expect them to any time soon. Part of the economic collapse was the rise in values, too dramatically, in a short period of time. I expect that the overall supply and demand market drivers will be tempered with fewer “easy” loans.
New York Banking Rates: Do you expect mortgage rates to fall to new historic lows, or are have they hit rock bottom?
PenFed: Competition for fewer loan dollars between lending institutions may still have an impact on the market and the rates.
New York Banking Rates: What are the steps a consumer should take in order to refinance a high-interest mortgage loan?
To see where your home value stands, an appraisal will have to be done. The investment of the cost of the appraisal can be well worth the money. Otherwise, check with your current lender to see if they have a rate modification program for existing borrowers.
New York Banking Rates: How often can a mortgage holder refinance?
PenFed: With the exception of Texas, there are not really limits to the frequency. Borrowers need to make sure for their given situation that it makes sense to do it.
New York Banking Rates: Is it possible to buy a home in with poor credit?
PenFed: The better the credit the more options available, and normally the lower the costs. There are programs available in the market for a wide range of credit profiles, but they have not returned to the pre-recession levels of availability.
New York Banking Rates: How should a married couple go about financing a home when one spouse has poor credit? Can one spouse afford the home on their own?
PenFed: As I’ve stated above, the better the credit, the more options available, and normally the lower the costs as well. There are programs available in the market for a wide range of credit profiles, but they have not returned to the pre-recession levels of availability.