Is it time to take advantage of the current attractive mortgage rates?

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May 22, 2020
is it the best time to take a mortgage?

If you’ve been looking into real estate in NYC, you may have noticed a bunch of price drops for listings on the market in both rentals and home sales in NYC—especially in Manhattan and Brooklyn. But what you might not know is that interest rates on mortgages right now are also super low! Therefore, right now might be a good time to buy a home if you’re looking to move, purchase a starter home, or invest into property. The low property values and low interest rates are contributing to a faster than expected recovery in buyer demand—which means as long as this keeps upthe market will be able to recover relatively quickly.

What do I need to know about the current real estate environment in NYC?

At the start of the COVID-19 pandemic, a lot of sellers began to pull listings from the market, while others held off on listing properties due to falling prices. As a result, the real estate market found itself with an unusually small supply of homes for sale. However, the lack of demand for housing in NYC due to the pandemic and stay-at-home order balanced out the small supply pool of available housing, which led to a semi-frozen real estate market in the city.  

That said, things could be picking up again really soon as prospective buyers begin to realize that this is an attractive time to buy property—perhaps especially if you’re looking to buy property as an investment.

How does this affect mortgages?

The Federal Reserve has been cutting short term interest rates by buying a ton of mortgage-backed securities, ensuring lenders will have enough liquid cash on hand to lend to future home buyers. As a result, in May 2020 we began seeing some of the lowest interest rates on mortgages ever, with an average of 3.28% for a 30-year fixed mortgage.

However, it’s important to keep in mind that the interest rate you’re offered will depend on a few other things as well. Other factors include your credit score, the type of mortgage you’re seeking, and the loan-to-value ratio. You can also check out our guides on everything you need to know about credit scores , getting pre-approved for a mortgage, and the different types of mortgages out there.

Is this a good time for me to buy?

If you’re already thinking about purchasing property in NYC, you really might want to consider doing it soon, while the rates are this low. They might not stay that way throughout the coming months.

According to Steve Kalifowitz, President of Localize, many people will be looking “to invest in more stable assets like real estate.”

“Once people will be able to leave the house freely, we should expect the rental market to come back quickly,” he added. “The sales market may come back fast too if the economy stabilizes.”

What would make your next home perfect?
Find it now on Localize ✨

Here are a few lenders with low rates right now:

Home price drops in NYC

If you’re looking to take advantage of the historically low mortgage rates right now, there are plenty of homes for sale in NYC with price drops. Localize is here to help you make home buying in NYC an easy experience. These are just a few discounted listings along with their percentage discounts:

3215 Avenue H, #6H

Space: 1 bed, 1 bath

Neighborhood: Flatbush, Brooklyn

Price drop: 7%

Current price: $325,000

This Flatbush apartment’s price has dropped by 7%. The building it is located in has no violations, no recent complaints, and no elevator issues. Additionally, this is a renovated space that features a terrace with views of Downtown Brooklyn and Manhattan.

However, according to Localize’s insights the apartment has limited natural light with only about 3.5 hours of direct sunlight during the summer, and here are eight active construction sites nearby. The neighborhood has an above average crime rate and the nearby school rates are low.

3215 Avenue H, #6H

701 Lafayette Avenue, #2B

Space: 1 bed, 1 bath, 570 sqft

Neighborhood: Bedford Stuyvesant, Brooklyn

Price drop: 7%

Current price: $519,000

This Brooklyn apartment currently has a 7% discount! Additionally, the building has no violations, no complaints, and no elevator issues. This space is located on a tree lined block and features white oak flooring, in-unit washer/dryer, and kitchen with white quartz countertops and full range Bosch and Blomberg appliances.

However, the neighborhood has slightly above average crime rate, with five active construction sites nearby. The apartment is located near Herbert Von King Park—and so the neighborhood has plenty of block parties and local festivals during the warmer months that are great for families. 

What is today's 30 year fixed mortgage rate?
701 Lafayette Avenue, #2B

53-24 201 Street

Space: single-family home, 4 beds, 3 baths

Neighborhood: Auburndale, Queens

Price drop: 7%

Current price: $1,120,888

This single-family home has a price drop of 7% and is a completely renovated space. It features large bedrooms, california closets, oak floors, formal dining room, eat-in kitchen, living room, and yard with patio. According to Localize’s insights, the building has no violations and no recent complaints. Additionally, the neighborhood it is located in has a below average crime rate.

Are mortgage rates going down in 2020?
53-24 201 Street

61 East 77 Street, #8E

Space: studio, 1 bath

Neighborhood: Upper East Side, Manhattan

Price drop: 6%

Current price: $419,000

This Manhattan studio has a 6% price cut and is a rare amenity as only four other listings also have an air conditioner, and only two others have in-unit laundry. It is located within the Upper East Side Historic District and the space is bright and sun drenched with 10.5 hours of sun during the summer. The apartment features 11-foot ceilings, stainless steel appliances, hardwood floors, oversized arched windows, dining space, and an in-unit washer/dryer.

The building has no violations and no elevator issues. However, there have been 18 recent complaints, which mainly consist of heating or hot water issues. The neighborhood it is located in has a below average crime rate and there is a hospital nearby—which can be great for emergencies, but also noisy.

Should I lock my mortgage rate today?
61 East 77 Street, #8E

830 Park Avenue, #1A

Space: 5 beds, 4.5 baths

Neighborhood: Upper East Side, Manhattan

Price drop: 6%

Current price: $8,000,000

This Manhattan co-op has a 6% price drop and is located within the Upper East Side Historic District. The building it is located in has no violations, no recent complaints, and no elevator issues. The apartment gets moderate natural light with about 5 hours of sunlight during the summer. It’s a luxury townhouse that features a wood burning fireplace, oversized living room, dining area, bay windows, chef’s kitchen, recreation room, wet bar, home gym, and much more. The neighborhood it is located has below average crime rates and is very close to a hospital.

Are mortgage rates dropping?
830 Park Avenue, #1A

24 Bennett Avenue, #31A

Space: 1 bed, 1 bath

Neighborhood: Washington Heights, Manhattan

Price drop: 5%

Current price: $399,000

This Washington Heights apartment has a 5% discount and the building it is located in has no violations, no recent complaints, and no elevator issues. It features a large living room with a dining area, remodeled eat-in kitchen, renovated bathroom, eight windows, hardwood floors, and king-sized bedroom. However, the space has limited natural light with only about one hour of direct sunlight in the summer.

This neighborhood is known as “Little Dominican Republic” and has slightly below average crime rates. This apartment is also near the George Washington Bridge, with incredible views of Manhattan and proximity to the gorgeous Fort Tryon Park.

Compare Current Mortgage Interest Rates
24 Bennett Avenue, #31A

157 East 72 Street, #1H

Space: 1 bed, 1 bath, 700 sqft

Neighborhood: Upper East Side, Manhattan

Price drop: 12%

Current price: $550,000

This Upper East Side condo has a 12% price cut. However, it is important to note that this space is available for investors only and not tenants. It is located within a historic district and has potential for growth as there is 23,425 sqft of space currently unused. The building it is located in has no violations, no complaints, and no elevator issues. The space gets moderate natural light with about 6 hours of sun during the summer.

It features hardwood floors, crown molding, classic sash windows, 22-ft long living and dining area, windowed kitchen, and spacious bedroom with windowed full bathroom. The neighborhood it is located in has below average crime rates and the nearby schools rate high on citywide school quality measures and has strong teaching and leadership.

What is today's mortgage rate?
157 East 72 Street, #1H

With the low mortgage rates along with price drops in many NYC listings, it can be a great time to look for a new home. Localize tells the truth about any home and has insights on all listings in New York City.

We do the intensive research so you don’t have to! Our insights help you avoid unpleasant surprises before it’s too late. Best off all, you can easily home hunt right from the comforts of your own home. Stay safe and happy apartment hunting!

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