Worried about rising interest rates, buyers are backing out of deals after contracts have been sent out — and, in some cases, even after signing them. kvelsey reports
. “Where I’ve been seeing this happen is with first-time homebuyers who need a mortgage and their job to pay their bills. A lot of buyers in the under $700,000 price range are already stretching,” says Gewirtz. Most New York buyers in that range are buying in co-ops, which have more stringent requirements than banks, making the interest-rate hike even more consequential. Co-op boards generally don’t want buyers to have debt-to-income ratios over 30 percent; some set the number even lower.
“They’re taking a pause. A lot of buyers want to see how their buying power is impacted,” he adds. And “a one percent interest-rate change can mean a different category of apartment” — whether the buyer can afford a one-bedroom versus a studio, or a renovated place versus an unrenovated one — says Gewirtz, who nonetheless recommends buyers get into the market as soon as they can, instead of getting hung up on “what their friends got last year.
“Sometimes you can feel it, but I didn’t feel it,” Jay says. The buyers cited global uncertainty, the war in Ukraine, inflation, lower Wall Street bonuses, upcoming layoffs, and rising interest rates. Even though they wouldn’t be borrowing money, they felt prices wouldn’t go up for some time. “Just because you have a lot of money doesn’t mean you want to pay top dollar,” Jay explains.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Educators look to create new contract as the school year begins.After months of working in 'dynamic status quo,' the Fairbanks Education Association is back at the bargaining table to create a new contract.
Read more »
SpaceX wins $1.4b NASA contract for 5 more NASA crew launches to ISSThe contract will run through 2030 and makes SpaceX over $4.9 billion in total.
Read more »
Back to school town hall with New York City Chancellor David BanksEyewitness News is hosting a town hall meeting with NYC Schools Chancellor David Banks to answer all your questions for the next school year.
Read more »
Serena Williams' last opponent, Ajla Tomljanovic, is a fanAlja Tomljanovic had hoped to beat Serena Williams. Tomljanovic wanted to add to her career highlights, wanted to reach the 4th round of the U.S. Open for the first time. Still, it was not easy for Tomljanovic to watch Williams in tears after her win.
Read more »
Serena Williams Loses U.S. Open Match, Like Ends Illustrious CareerWilliams tearfully addressed the crowd at Arthur Ashe Stadium in Flushing, New York following the loss.
Read more »