OH NO! Mortgage Rates In New York Are Higher Than They’ve Been Since 2002
Something happened in October that worried many people (including myself) that could make for some sleepless nights for us. Mortgage rates in New York are officially higher than they've been since 2002.
Do you remember what happened in 2002? That is the year that the housing market in the United States collapsed because some really cheap credit and lending standards led to a housing bubble. When that bubble popped open, the banks were left holding the bag with trillions of dollars of mostly useless investments in mortgages.
But wait, there was more to come. After the housing bubble burst, The Great Recession came in and took away jobs, savings, and homes from so many of us. Just when we thought the dust had settled, the pandemic happened and we have been crippled again.
Mortgage Rates In New York Are Skyrocketing
Mortgage rates in New York have jumped up to almost 7% and thanks to inflation, it doesn't look like it is going to be going down anytime soon. Like a hot air balloon, the inflation rate is expected to just keep getting higher and higher.
Do you need proof? Here's an example of how out of control things have gotten with mortgage rates. In 2021, the average rate for a 30 year fixed rate mortgage was 2.86%. Exactly one year later, the same 30 year fixed rate mortgage is now over 6%.
The high interest rates aren't just going to hurt New Yorkers that are looking to buy a new home but can't afford it. It's also going to hurt home sellers because the buyers market is getting smaller too. It's deja vu all over again...Just like 2002.