WHITE PLAINS, NY (WCBS 880) – Just when realtors thought things were getting better, the federal government plans to stop backing high-end mortgages, some as large as $730,000.
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Michael Graessle of the Westchester Putnam Association of Realtors says this is not good for Westchester County.
“The jumbo mortgages are being used in a significant number in Westchester,” he says.
Graessle says the higher-end communities will be hit the hardest, but it’s going to cause an overall slowdown in the market.
“It’s the ability to purchase that’s going to be impacted,” he says. “The higer-end homes, people will either have to come up with larger down payments, have stronger credit scores, or delay a purchase.”
The federally backed mortgages are set to come to an end at the end of the summer.