As Mortgage Rates Rise, More Deals Sink
The suffocating embrace of the subprime crisis is definitely starting to take the wind out of the city’s residential deals. Mortgage brokers say they’re seeing a pronounced uptick in the number of buyers who are backing out of deals because they can’t get mortgages at competitive interest rates. Hardest hit are borrowers who don’t have…
The suffocating embrace of the subprime crisis is definitely starting to take the wind out of the city’s residential deals. Mortgage brokers say they’re seeing a pronounced uptick in the number of buyers who are backing out of deals because they can’t get mortgages at competitive interest rates. Hardest hit are borrowers who don’t have excellent credit histories, or who expected to take out large mortgages and then pay them down with bonuses. A number of brokers say they’re seeing plenty of prospective buyers who didn’t lock in rates and who can’t close on the units because they can’t afford higher-than-expected monthly payments. And these are borrowers who aren’t necessarily on financially shaky ground—a sobering article in today’s Times documents some of the effects of too-lenient lending practices geared towards lower-income earners. Large swaths of working-class enclaves in the boroughs, like parts of central Brooklyn, have turned into new-development ghost towns because of predatory lending practices and concomitant rising foreclosure rates. So it’s becoming clear that the mortgage industry crisis is now affecting the city’s haves and have-nots. Anyone had a deal scuttled recently?
Frustrated New Yorkers Grapple With Loan Rates [NY Times]
Risky Loans Help Build Ghost Town of New Homes [NY Times]
Photo by D.B. Blas
12:11,
Antipasti for your link. Shorter (45 min), simpler animated video to warm one up for 3-hr long Money Masters.
http://video.google.com/videoplay?docid=-9050474362583451279&total=30&start=0&num=10&so=0&type=search&plindex=6
Glad to see some non-sheeps out there.
Thats right 5:26, there is an ABSOLUTE corollation between higher prices and lower dollar (or any other currency).
It takes more dollars to fill up gas because the strength of the dollar (in the eyes of foreign investors,oil suppliers,bond buyers,etc.) is steadily declining. You see America’s “FICO score” is worst than anyone elses on this blog!!!!
Just like the guy with maxed out credit and high debt levels takes a big credit hit…so does our greenback!
The government, our government, is currently in debt to the tune of approx 8.3 TRILLION bucks (because not only do they spend more than they take in in tax revenue… but they are essentially repaying bond debt, INTEREST ONLY, by selling more bonds!!!
So yes, homes will continue to “appreciate” simply because the dollar, in my opinion, will continue to “depreciate”….
ALONG WITH THE PRICE OF EVERYTHING ELSE IN OUR COUNTRY.
Lets just hope wages will rise as fast.
P.S. Oh and please please please take any economic news/figures the government gives you with a pound of salt just like you would any political, social news they throw on the wall.
Mr. Greenscam
are you crazy – what about health care and education??? Prices have gone completely through the roof. Although I read a very very interesting article in WSJ a few weeks ago that said that housing prices tended to follow the value of gold and the recent explosion in home values is no exception – some kind of reaction to the value of the dollar going down/inflation.
4:17 here. Hey dummies (4:33 and 5:17), I was COPYING the 3:38 comments from “The What” and attempting to juxtapose them against the quote from Dr. King. I AGREE that the “pricing” information is ridiculous.
4:17 is sincerely ignorant of the difference between nominal and real prices.
I don’t notice that, actually.
While housing prices have gone through the roof, I would not say the same for everything else.
I think you’re smokin somethin, 4:17.
It’s not a question of right of wrong, I just look at the facts. Our money has lost 45% of it’s value in 7 years. The cost of living is skyrocketing to new highs. Rent, food, gas and heath cost are more expensive than ever. I find it funny that no one else notice this. I just trying to bring my point across, thats all.
Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity.
Martin Luther King Jr. (1929 – 1968), Strength to Love, 1963
“Hey What – your excessive use of capital letters (and exclamation points) doesn’t make you correct. You’re like one of those people who believe that whoever yells loudest “wins” the argument.”
It’s not a question of right of wrong, I just look at the facts. Our money has lost 45% of it’s value in 7 years. The cost of living is skyrocketing to new highs. Rent, food, gas and heath cost are more expensive than ever. I find it funny that no one else notice this. I just trying to bring my point across, thats all.
“You do realize, “the what” that not a single person on this board seems to give a rats ass about what you speak of.
It’s all jibberish and nonsense.
Perhaps you can take an English course or two and then revisit our lovely site…?”
Well.. if you send your children to schools in this neighborhood, they will come out like me. Remember that’s the price of Gentrification. Shity schools, crime and the lovely things that come with it.
“Sure, freedom of speech is great. The What can post all he wants, as far as I’m concerned.
I just hope he realizes that the second I see his trademark posts, I move to the next.
I’m guessing a lot of people do the same.
Hey bud…reposting the previous comment every time really isn’t necessary btw.
It’s all a smokescreen to make your comments as long as possible because you think more people will read them, when it actually has the opposite affect.”
People have a problem paying attention (like the FED). I don’t want to be misunderstood.
“Profanity is the refuge of people who are unable to adequately express themselves.”
I agree with this statement, now go fuck yourself.
Profanity is the refuge of people who are unable to adequately express themselves.