How will the Recent Bank Collapses Affect Your Mortgage Interest Rate?
Mar 21, 2023 brooklyn,Brooklyn Buyers,Brooklyn Buyers Agent,brooklyn real estate,brooklyn realty,Buying in Brooklyn,interest rates,mortgage interest rate,new york interest rates
Silicon Valley Bank made national news last week with its collapse, prompting the Federal Reserve, Federal Deposit Insurance Corp. and Treasury Department to create an emergency program to backstop all deposits using the Fed’s emergency lending authority. Silicon Valley Bank became the second largest bank failure in U.S. history, and the largest since the 2008 financial crisis.
This caused quite the stir – and rightfully so – leaving people feeling triggered and reminiscent of the chaos of 2008. A flurry of other banks crushed under the panic, and people are unsure of what to expect next.
So where does that leave the housing market? Well, according to the National Association of Realtors, buyers could expect lower interest rates. In fact, on Monday March 20, interest rates on a 30-year fixed mortgage had fallen 50 basis points lower than last week. And it could be indicative of the behavior of the Federal Reserve moving forward.
Lisa Yountchi, Mortgage Professional from Cross Country Mortgage, discussed the situation and what it could mean for new homebuyers seeking mortgages in our Buying Into Brooklyn workshop. Learn what she has to say about what could be next here:
Read more about what exactly happened to these banks, why it happened, and how it could affect the NYC housing market here.
3/22/2023 Update: The Fed did increase interest rates by a quarter point, but analysts say this might mark a slowdown to future hikes. Read more about that here.
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