Rapid
October 12th, 2004, 02:21 AM
Demand for real estate grows
SEAN ADKINS
Sunday, October 10, 2004
Higher interest rates have started to hurt Thomas W. Berridge’s residential refinance business.
Recently, Berridge’s Chase Manhattan Mortgage Corp. firm in York has seen interest rates climb to 6 percent — a move that has cut his mortgage refinance business in half when compared to last year.
But higher rates have yet to quell demand for real estate on both a local and national level.
In August, national sales of new homes jumped by 9.4 percent — the largest increase since December 2000 when new home sales rose by 11.7 percent, according to the U.S. Commerce Department.
In September 2003, Berridge said he wrote loans for 18 residential properties compared to 17 deals closed last month.
“It’s been very consistent,” he said. “It’s been very dependable and steady. It has not yet hit that magic number that will scare people away from people buying homes.”
Increased demand for property has kept local new and existing housing inventories at critical lows, forcing price spikes across the county.
Between January 2003 and July 2003, the average sale price of a typical York County house was $135,572, Berridge said.
A year later, the average price for a new or existing house in York County was $151,141, he said.
But elevated interest rates expected to take effect by March might hurt property sales and slow the refinance trade to a trickle.
Chase Manhattan Mortgage Corp. projects interest rates will climb to 6.5 percent for a 30-year fixed mortgage with no points.
For example, a house valued at $160,000 with an interest rate of 6.5 percent will demand a monthly payment of $1,011.31 a month, minus taxes and insurance.
A year ago, when a potential buyer could lock in a rate of 5 percent, the monthly payment for a $160,000 house would have been $858.91 — a savings of about $1,828 a year.
“We are hoping that rate stays low enough to keep people buying homes,” Berridge said. “But that kind of rate will stop the refinance business.”
SEAN ADKINS
Sunday, October 10, 2004
Higher interest rates have started to hurt Thomas W. Berridge’s residential refinance business.
Recently, Berridge’s Chase Manhattan Mortgage Corp. firm in York has seen interest rates climb to 6 percent — a move that has cut his mortgage refinance business in half when compared to last year.
But higher rates have yet to quell demand for real estate on both a local and national level.
In August, national sales of new homes jumped by 9.4 percent — the largest increase since December 2000 when new home sales rose by 11.7 percent, according to the U.S. Commerce Department.
In September 2003, Berridge said he wrote loans for 18 residential properties compared to 17 deals closed last month.
“It’s been very consistent,” he said. “It’s been very dependable and steady. It has not yet hit that magic number that will scare people away from people buying homes.”
Increased demand for property has kept local new and existing housing inventories at critical lows, forcing price spikes across the county.
Between January 2003 and July 2003, the average sale price of a typical York County house was $135,572, Berridge said.
A year later, the average price for a new or existing house in York County was $151,141, he said.
But elevated interest rates expected to take effect by March might hurt property sales and slow the refinance trade to a trickle.
Chase Manhattan Mortgage Corp. projects interest rates will climb to 6.5 percent for a 30-year fixed mortgage with no points.
For example, a house valued at $160,000 with an interest rate of 6.5 percent will demand a monthly payment of $1,011.31 a month, minus taxes and insurance.
A year ago, when a potential buyer could lock in a rate of 5 percent, the monthly payment for a $160,000 house would have been $858.91 — a savings of about $1,828 a year.
“We are hoping that rate stays low enough to keep people buying homes,” Berridge said. “But that kind of rate will stop the refinance business.”