Co-op/condo mortgage rates continue to rise

Real Estate Weekly, Nov 24, 1999

Dogged by inflationary fears, mortgage rates for New York luxury co-ops and condominiums continued their upward spiral last month, according to The Manhattan Mortgage Company, a leading specialist in co-op, condominium and private home residential financing, which surveys and analyzes New York mortgage rates and borrower preferences on a monthly basis.

According to its most recent report, which is based on data from over 30 major lending institutions, all serving the New York residential marketplace, the two most popular fixed-rate mortgage products rose during the month, as did all five leading adjustable rate mortgages.

In the fixed-rate category, 15-year fixed-rate mortgages climbed to 7.75 percent from 7.357 percent, while 30-year fixed rates increased from 8 percent to 8.25 percent.

In the adjustable mortgage category, one-year adjustables climbed from 6 percent to 6.375 percent; three-year products rose from 6.75 percent to 7.125 percent; five-year adjustables increased to 7.5 percent from 7.25 percent; seven-year loans averaged 7.625 percent compared to 7.5 percent the previous month; and 10-year adjustables went from 7.5 percent to 7.75 percent.

"A good economy is bad for interest rates," noted Melissa Cohn, chairman and CEO of The Manhattan Mortgage Company, who added that "virtually all indicators pointed to an expanding economy in October, while at the same time the dollar was weakening."

In terms of loan preferences, The Manhattan Mortgage Company survey reported that 32 percent of co-op/condominium borrowers chose five-year adjustable rate mortgages in October, while 30-year fixed rate mortgages accounted for 14 percent of the marketplace.

The Manhattan Mortgage Company is a full-service mortgage brokerage specializing in the financing of luxury residences in the metropolitan New York marketplace. A copy of its monthly mortgage survey is available at no charge by contacting its office at 555 Madison Avenue.