The number of new construction loans issued in New York City fell sharply last month, as the city’s economy continues to slide and the housing market continues to tank.
New York has more than 1.2 million people who have taken out new construction debt, according to figures from the Federal Reserve Bank of New York.
But while the number of people who took out new loans jumped in May, the number still was less than the year before, and it fell just short of the record of 1.7 million people taken out in 2008.
New loans have grown more rapidly in the last year than in the previous 10 years.
New construction is a broad term that refers to a type of loan used by builders to finance construction.
It includes loans for interior renovations, for renovations to the exterior of a building, for a new driveway or new windows, for an apartment or house renovation, and for repairs to a building’s infrastructure.
In addition, the loan can also include loan modifications to a property.
For instance, a builder may be required to take out a loan for renovations at an apartment building, which may be done with money from a building loan, said James G. Hutton, an economics professor at Hunter College and a former president of the American Institute of Architects.
The number of loans issued fell sharply in May after the housing crash and the economic downturn hit New York, but the number was still higher than the previous year, when 1.8 million people took out the loans.
New interest rates are the latest measure that can help explain why loan growth slowed in May.
Interest rates on the New York market have been relatively low since the financial crisis, and rates are currently well below the rates that they were in 2007.
For example, an 8.75 percent interest rate on a $250,000 loan would be about 3.5 times higher than it is today.
But the Federal Open Market Committee (FOMC) will be meeting on Thursday to vote on whether to raise rates.
Rates will likely remain near zero for the next few months, as investors remain wary of the risks of a possible tightening.
New mortgage interest rates have been at historically low levels for years.
Rates in the high single digits for years, and in some cases even lower, until the financial meltdown.
In May, rates were close to 7.25 percent.
As of June 30, the average interest rate paid on New York mortgage debt was 1.3 percent, according the Federal Housing Finance Agency.
For many borrowers, that rate is far below what the median household needs to pay to borrow a down payment, and those loans will need to be refinanced.
That means the interest rate they’re paying is not an accurate reflection of the real cost of the debt, said John R. Davis, an associate professor at the University of Rochester Law School.
“That’s really going to affect the amount of money you have to put down, the size of the balance you have on your mortgage,” Davis said.
He said that a higher mortgage rate will make it more difficult for borrowers to refinance their loans, because borrowers will likely not have enough equity to make that kind of payments.
Some New Yorkers may see their mortgage payments go up if rates go higher, but that’s not likely to be the case, Davis said, noting that borrowers with higher debt loads will have to refit their mortgages even if rates stay low.
“If the rates go up, they will reduce the equity in the debt,” Davis added.
New Jersey’s rate of 4.25 percentage points is the lowest in the country.
In New York state, the median mortgage loan is $205,500, according a recent report from the Mortgage Bankers Association.
For people making $125,000 or less, the monthly payments are $25,000.
The FOMC’s decision on Thursday will affect the number that can get into an apartment, but it won’t affect the size, as that will depend on the market, according with David M. Stolar, the chairman of the New Jersey Housing Authority, which oversees housing.
He noted that the median cost of an apartment is $2,400, and the average monthly payment is $1,900.
For more news videos visit ABC NewsHomefront: Trump to address crowd of veterans at Arlington National Cemetery article President Donald Trump will address a large crowd of military veterans at the Arlington National Cathedral on Friday afternoon, marking the 100th anniversary of the arrival of World War I, the White House announced Friday.
“Today, we mark 100 years since the arrival at Normandy of the first American forces to the battlefields of World Wars I and II,” Trump said at a joint press conference with Secretary of Defense Jim Mattis.
“Our troops have served in every war and every conflict since, and they will always be remembered for their valor and courage.
In the years to come, the United States will be a nation of heroes.”
A military memorial