NY and NJ housing update: rates ease, rentals stay tight

Mortgage rates are easing, but still well above last year

Freddie Mac's weekly survey put the 30-year fixed at 7.24% for the week of October 29, down from 7.32% the week before and 7.40% in mid October. That is two straight weekly drops. It is still about a full point above the 6.17% average from a year ago.

Here is what that means in plain numbers. On a $400,000 30-year loan, principal and interest comes to about $2,726 a month at 7.24%, compared with about $2,770 at 7.40%. That is $44 a month. Taxes and insurance are extra, and in much of New Jersey and Westchester they can add a lot more than that.

• Thinking about refinancing: compare your current rate to today's average before you pay for an appraisal. Our refinance guides show the math.
• Buying: small rate moves matter less than your down payment, credit score and the price you pay.
• These are national averages, not offers. Your rate depends on your credit, down payment, loan type and the day you lock.

North Jersey rentals are now tougher than Brooklyn or Queens

A RentCafe study ranked North Jersey 18th in the country for rental competition, ahead of Queens at 22nd and Brooklyn at 26th. The study was covered by Jersey Digs, ROI-NJ and the New York Post. If you are crossing the Hudson to escape the New York rental market, plan on the same speed and paperwork you would need in the city.

It helps to have your documents ready before you tour: recent pay stubs, ID, and a reference from your current landlord.

Financing for rent-stabilized buildings in NYC got harder

The City Reporter reported that Fannie Mae has tightened its underwriting on New York City rent-regulated buildings and that Freddie Mac has paused new loans while it reviews the impact of the rent freeze passed in June. Fannie Mae's new assumptions reportedly treat rents on stabilized units as flat for four to eight years. The Real Deal and MortgagePoint also covered the report.

This matters mostly to building owners and investors, not to people buying a home to live in. Renters in those buildings should watch for it over time, since less financing can mean less money for repairs.