The Real Deal Miami

First-time homebuyers affected most by increased rates

June 17, 2009 12:59PM

As
lenders prepare to increase the rates for borrowing this week,
first-time homebuyers may be the ones affected the most. First-time
homebuyers generally have little equity and seek large loans, making it
expensive and difficult to find people willing to lend to them, David
Black, principal consultant of banking at financial information Web site Defaqto.com, told CNBC. “There’s still a limited amount of
appetite among a lot of the lenders to lend a great deal of money,”
Black said. However, there is still a great variation in standard
variable rates, so people might still be able to find some good deals.