Mortgage rates dip again for co-ops/condos in March

Real Estate Weekly, April 28, 1993

After reaching new lows in February, interest rates for New York luxury co-ops and condominiums continued to fall in March.

So reports 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 March report, which is based on data from 10 major lending institutions, all serving the New York residential marketplace, rates dropped for the three leading fixed-rate mortgages and one of the three most popular adjustable rate mortgages.

In the fixed-rate category, 15-year fixed-rate mortgages dropped from 7.25 percent to 7 percent, 30-year fixed-rate mortgages fell from 7.875 percent to 7.625 percent, and sevenyear fixed-rate mortgages declined from 7.125 percent to 7 percent.

In the adjustable mortgage category, one-year adjustables dropped from 5 percent to 4.75 percent, while threeyear adjustables remained at 6.375 percent and five-year adjustables stayed at 7 percent.

According to Melissa Cohn, partner of the Manhattan Mortgage Company, the big news is not necessarily the decline in March mortgage rates but the way first time buyers and owners who are refinancing are selecting rates. She says that many buyers are now choosing a 10-year fixed rate now available at 6.625 percent that has only recently become an affordable option.

In terms of loan preferences, The Manhattan Mortgage Company survey reported that 35 percent of co op/condominium borrowers chose oneyear adjustable-rate mortgages in February, while 30-year fixed-rate mortgages accounted for 34 percent of the marketplace.