Mortgage rates rise after Clinton victory

Real Estate Weekly, Jan 6, 1993

After rising in October, interest rates for New York luxury co-ops and condominiums rose across-the-board in November.

So reports The Manhattan Mortgage Company, a 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 November report, which is based on data from 10 major lending institutions, all serving the New York residential marketplace, rates rose for the three leading fixed-rate mortgages and the three most popular adjustable rate mortgages in November.

In the fixed-rate category, 15-year fixed-rate mortgages rose from 8 percent to 8.25 percent, 30-year fixed-rate mortgages increased from 8.50 percent to 8.625 percent, and seven-year fixedrate mortgages climbed from 7.50 percent to 7.75 percent.

In the adjustable mortgage category, one-year adjustables rose from 5.25 percent to 5.62 percent, three-year adjustables increased from 7 percent to 7.25 percent, and five-year adjustables climbed from 7.25 percent to 7.375 percent.

According to Melissa L. Cohn, partner of the Manhattan Mortgage Company, the rise in November's rates can be attributed to the hope for change and fear of the future that was engendered by the Democratic victory, along with a new sense of optimism as the economy showed moderate improvements.

In terms of loan preferences, The Manhattan Mortgage Company survey reported that 32 percent of co-op/condominium borrowers chose 30-year, fixed-rate mortgages in November, while one-year adjustable-rate mortgages accounted for 31 percent of the marketplace.