Westchester County NY Real Estate Blog - Mortgage Rates

Tariffs, Rates, and What It Means for Spring Buyers

Tariffs, Rates, and What It Means for Spring Buyers

President Donald Trump's recent "Liberation Day" tariffs are expected to impact the U.S. housing market by increasing construction costs and influencing mortgage rates. Following the announcement, mortgage rates fell sharply, with the average 30-year fixed rate dropping 12 basis points to 6.63%—the lowest since October. This decline reflects a market shift as investors moved from equities into U.S. Treasury bonds, which typically guide mortgage rates. At the same time, the tariffs are projected to raise new housing costs, with the National Association of Home Builders (NAHB) estimating a $9,200 increase per new single-family home due to higher prices on imported materials like lumber,…

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Reader Q&A: Westchester County Sellers

Reader Q&A: Westchester County Sellers

Is it worth making upgrades or should we sell “as-is”?

It all depends on your home’s condition and how it compares to the competition. I never recommend my sellers spend money on upgrades unless there’s a clear return on investment. Small cosmetic changes, like fresh paint, updated lighting, or minor kitchen and bathroom touch-ups, can add value. But major renovations don’t always pay off; I sold a home with a brand-new kitchen a few years ago — the buyers hated it and tore it out after closing. A pre-listing consultation can help determine which updates, if any, will boost your home's appeal and selling price.

We tried selling our home but didn’t like the offers. What should we do…

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Mortgage Rates Dip as The Spring Market Approaches

Mortgage Rates Dip as The Spring Market Approaches

Harbor Island Park, Mamaroneck

The U.S. housing market is experiencing a slight easing in mortgage rates, offering a glimmer of hope for prospective buyers as the spring selling season approaches. Today, the average 30-year fixed mortgage rate hit a new low for 2025, dropping to 6.70%. Additionally,

• Refinance activity hit its fastest pace since October 2024.

• Mortgage applications increased 9% week-over-week, up 2% from last year.

• Property tours are up 25% from the start of the year, according to Redfin.

Ralph’s Take

Mortgage rates have shown stability, a promising sign for both buyers and sellers as we head into the spring…

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NAR Chief Economist Forecasts 9% Bump in Home Sales

NAR Chief Economist Forecasts 9% Bump in Home Sales

At the National Association of Realtors® (NAR) NXT conference, Chief Economist Lawrence Yun projected a 9% increase in existing home sales for 2025, followed by a 13% rise in 2026. He also anticipates new home sales to grow by 11% in 2025 and 8% in 2026. Yun attributes these forecasts to expected stabilization of mortgage rates around 6%, ongoing job market growth, and an increase in housing inventory compared to the past five years. Additional points:

• Household equity at a record high

• Expect 6 to 8 interest rate cuts

• Mortgage rates to stabilize between 5.5% and 6.5%

Ralph’s Take

While Yun’s forecasts are optimistic, I hold a little…

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Could This “Magic Rate” Unlock the Market?

Could This “Magic Rate” Unlock the Market?

According to a recent analysis by John Burns Research and Consulting (JBREC), there may be a "magic" mortgage rate that could spark renewed activity in the housing market. For 12 consecutive years, mortgage rates remained below 5%, enabling many homeowners to lock in favorable terms. Currently, 86% of mortgage holders have rates under 6%. JBREC's survey suggests that the 5.5% mortgage rate represents the tipping point that could release the “ lock in effect ”. Additional findings:

• 72% of buyers would not accept a rate above 5.5%

• 22% of buyers would accept a rate higher than 6%

• 66% of consumers believe a “normal” rate is below 5.5%

• 88% of consumers believe…

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Mortgage Rates Rise Despite Fed Cuts

Mortgage Rates Rise Despite Fed Cuts

While the Federal Reserve's decisions influence the economy, their impact on long-term rates like mortgages is indirect. Following the Fed's 0.50% rate cut on September 18th, mortgage rates began to increase slightly. This week, the 30-year fixed-rate mortgage rate jumped to 6.64%, the largest one-week increase since April. Here’s why:

• Economic Data: Better than expected housing starts, retail sales, labor figures, and the September jobs report exceeded expectations.

• Rise in Treasury Yields: Mortgage rates are closely tied to long-term U.S. Treasury yields. As they have risen, so have mortgage rates.

• Investor Concerns: Worries about inflation and monetary policy shifts…

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Is Now the Best Time to Buy in 2024?

Is Now the Best Time to Buy in 2024?

Fall is typically a quiet period for real estate but as we transition into this fall, we could see a shift in the market. Historically, home tours peak in the spring, but with interest rates set to drop in the coming months, experts are predicting we might see buyers and sellers act sooner. This year could bring a unique inversion with buyers actively shopping as mortgage rates hit their lowest levels since May 2023.

• The average 30-year mortgage rate hit a 52-week low today, at 6.27%.

• Buyer traffic is down -1.3% compared to the first week of the year, according to ShowingTime®.

• New Inventory: 103 single-family homes have been listed in Westchester since 9/1. In…

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Today’s rate is a new 52 week low, at 6.27%.

Mortgage Watch 

Since reaching a high of 7.52% in April, the average 30-year fixed mortgage rate has continued to drop. Today’s rate is a new 52-week low, at 6.27%.

Source: Mortgage News Daily

> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.

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The "Mortgage Rate Lock-In Effect”

The "Mortgage Rate Lock-In Effect”

A recent Redfin article delved into the "mortgage rate lock-in effect”, where homeowners are reluctant to sell their homes due to their advantageous low mortgage rates - which is intensifying the housing shortage. As we mentioned in July, 86% of mortgages have an interest rate below 6%, but that has been gradually decreasing over the past two years (93% in 2022, 91% in 2023, 86% this year).

Current percentage of mortgages with:

• Rates Below 6%: 85.7% (down from 92.8% in 2022)

• Rates Below 5%: 76.1% (down from 85.6% in 2022) 

• Rates Below 4%: 57.4% (down from 65.3% in 2022) 

• Rates Below 3%: 22% (down from 24.7% in 2022)

Ralph’s Take

…

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How Mortgage Rate Changes Affect Your Purchasing Power

Visual of the Week 

How Mortgage Rate Changes Affect Your Purchasing Power

It’s important to know how mortgage rates can affect your monthly payment. Because even a slight change in rates can have a big impact. Overall, rates have been trending down lately. So, this could be your chance to make your move a reality. Send me a message today if you want to talk about starting your search.

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