I attended a presentation from brokers marketing a new condo with anticipated closings starting March 2007. They are requiring 10% deposit with signing and another 10% in 90 days. No financing contingencies.
When asked why they responded "the developer felt less buyers would walk with 20% invested."
The lowest priced unit is $735,000. most are in the millions. I'm thinking who's going to walk from $73,000. Then I realized that some buyers might have to. If interest rates go up they might not be qualified for the same amount 8 months from now.
A mortgage broker from Wells Fargo that was present informed us that Wells Fargo has a product for new construction for 1/4 point they lock the rate for 1 year. If the rates go down you get the lower rate.