Are Mortgage Rates Falling?

The first quarter of 2023 turns out to be better than expected.

Last year, NYC homebuyers were worried about where interest rates would end up. But it appears that rates have dropped from 6.42% to 6.23%. It's a modest reduction, but it's the lowest that the rates have fallen during the past few months. 

That's a good thing for buyers. Lower interest rates mean lower homebuying costs as people could finally secure their dream homes at a more affordable rate. 

Their success, however, will depend on another essential market factor: inventory. 

Even if mortgage rates are going down, buyers will still have to deal with inadequate supply which could keep real estate prices out of reach for many buyers. 

So, even if mortgage rates are to keep declining in the succeeding months, buyers will still need to brace for a highly competitive spring buying season where bidding wars could get bloody. 

But that isn't exactly the case - at least according to experts. 

What to Watch Out For in the Coming Months

A real estate inventory is growing sluggishly across the country as builders and developers struggle to meet project deadlines and secure materials amid a high-inflation climate. 

Added to this is the fact that existing homeowners haven't found a good reason to get their homes listed since they just locked in on lower rates over the past two years. But despite this, buyers remain motivated as they scour the market to look for their ideal homes. 

This, however, wasn't enough to cause home sales to increase. In NYC alone, Redfin.com reported that 2,219 homes were sold last month. This is less than last year when more than 3,650 residential sales were recorded. 

With inventory still limited, buyers will find themselves competing for what few listings are available. 

Still, with mortgage rates expected to drop, buyers could at least increase their purchasing power and get a bigger home with better amenities. 

It's possible so long as you know how to navigate the market. 

Get a Realtor to Walk You Through the NYC Market

If you are planning to make NYC your next home, then it matters a lot to know how to get around the city's historically expensive market. 

You can't do it alone, considering that competition remains high, especially among newcomers. Your best bet would be to get a real estate professional with an extensive network of sellers.

With the right person involved in the search for your dream home, you can save time looking around for potential homes in ideal neighborhoods. Your realtor may already have listings that match your lifestyle and budget.

More importantly, getting a real estate professional can help fast-track the buying process. The spring selling season is about to start, so the sooner you close in on your home, the better. You could avoid being caught in a demand surge that will push real estate prices even further. 

In today's market, you can't afford to delay your homeownership goals. Let's connect and get started on finding a home you’ll love!

Contact me at 917-627-5677 or send an email to ehaliva@elliman.com. I know a few places to meet and discuss your homebuying strategy over coffee.

Sounds good? Let me know.

Talk soon, 

Eli