Posted by Jonathan J. Miller -Thursday, September 8, 2011, 3:00 PM
It’s time to share my Three Cents Worth on Curbed NY, at the intersection of neighborhood and real estate in the capitol of the world.
Here’s a two-fer on mortgages. I was doing some analysis on the market impact of the looming October 1 drop in Fannie Mae’s conforming loan limit to $625,500 from $729,750 and had a mortgage data set lying around (2011 aggregated mortgage data wasn’t yet available) so I thought I’d share. Incidentally, the drop of the loan limit is not catastrophic to the Manhattan housing market, but it certainly isn’t helpful. Based on the sales over the past year, around 7 percent of the sales would have been moved to jumbo, facing higher down payment requirements, higher rates and FICO and other tighter underwriting requirements. Some of the sales could fall apart due to credit but it would be unlikely that all of them would…
Three Cents Worth: Cash for Jumbo Real Estate