From the August issue: Ask half-a-dozen mortgage and real estate brokers which bank has the
best rates for residential mortgages in New York City right now, and
expect two dozen different answers.
Then check back again, in a week or even a day, for an entirely new set of replies.
Buyers have typically benefited from shopping around for mortgage
rates from various lenders. However, in the wake of a massive
government bailout of ailing banks plus a recessionary deep freeze in
the credit markets, the residential mortgage market is more splintered
than it has been in 15 years. What’s more, it’s only growing more
fractured. “It used to be three or four banks would control 80 percent of the
market, but now it’s 12 banks, and those constantly change,” said Eric
Appelbaum, president of Apple Mortgage Corp. in Manhattan. “Rates are
between 4 7/8 and 5 3/8 right this second, and two months ago they were
cheaper.” Look beyond the waves of volatility, and a few clear trends emerge. [more]