Mortgage rates are slowly trending downward at just the right time. As of this week, conforming loans sit at 6.75%, FHA loans at 6.27%, and jumbo loans at 6.85% — the lowest levels we’ve seen since early April. While these aren’t dramatic drops, they’re meaningful. Just a few months ago, rates hovered stubbornly above 7%. Now, as the summer buying season kicks into gear, buyers are starting to reengage. According to the Mortgage Bankers Association, mortgage applications ticked up 1.1% last week, early signs that buyers are taking notice.

Cautious optimism is beginning to take hold. Declining mortgage rates are breathing some life back into both the refinance and purchase markets. If rates continue to ease, even modestly, we could see the summer selling season stretch further and re-engage buyers who’ve been sitting on the sidelines. With the potential of a Fed rate cut, the bond market is already positioning for lower yields — pulling down Treasury rates, which mortgage rates typically follow. That’s particularly meaningful in Westchester, where many buyers are also sellers. Each buyer who returns often brings a new listing with them — something our low-inventory market urgently needs.