It is rumored that Kensington Tower, which was to be located across the street from Archstone Apartments on Washington St. in Chinatown has been put off until further notice. My assumption is a lack of financing, and a softening condo market. From a pure neighborhood position I certainly hope a big developer does something exciting with the land, maybe a luxury hotel, to continue the momentum of gentrification in the area.
August 29, 2007
Interest Rates Are Dropping
In the last few weeks interest rates on a non-jumbo loans have fallen approximately 25 basis points. Unfortunately though, luxury condo buyers are getting hurt the most as they are making up the slack for the subprime mess. A jumbo, 5 year ARM, which are loans over $417k are reaching upwards of 7.5%(6% 3 months ago). Forget about 100% financing, it does not exist in this environment. My friend who works at First Horizon mentioned that there was no warning for this. it happened overnight so professional and novice investors alike could not prepare.
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My opinion: Personally I think rates will start to come down more dramatically the Fed lowers rates and people on Wall Street put their money in safer investments like bonds. As people buy these bonds, the yields will go down and interest rates on home loans will follow.