Construction loan rate increases in Brooklyn, as apartment owners are paying more for construction, an industry group said Thursday.
The Associated Builders & Contractors of New York said the state’s three largest lenders increased the rate on all construction loans from 5.1 percent to 6.1.
That was a 10 percent increase, but it was still lower than the rate of 7.5 percent in the state.
Construction loan applications were down in April, but up in May and June.
The state Department of Housing Preservation and Development said it expected to see construction loan applications for the first quarter of 2019 rise from 1.4 million to 1.7 million.
The department’s website shows applications for $2.4 billion in new construction.
A few months ago, the state issued new construction loan rates.
But it said that was because it didn’t have enough information to determine what percentage of applicants had the right loan terms and the types of projects.
It was unclear how much that would change.
A construction loan application in New York City in March showed the state had increased the number of applicants, the number that were approved and the percentage approved.
It also showed the rate hike for all applications for construction loans in the first six months of the year, from 3.2 percent to 4.4 percent.
In May, the agency also issued a report saying there was more uncertainty about which loans would be approved in the future.
It said it was uncertain whether the rate increases would be permanent, and some states have lowered their rate for certain projects, but most of the new projects in New Jersey were approved.