With interest rates coming down, questions abound as to how it’ll change New York real estate. Lower interest rates often make mortgages more affordable, potentially increasing demand for homes and driving up prices.
However, the exact impact can vary based on many factors specific to the New York market. Check out Home Pros where you can find a mortgage professional or real estate agent who can provide up-to-date insights.
To get clarity, we consulted with Eugene Litvak, licensed associate real estate broker at Compass, and Brian Scott Cohen, senior loan officer at GR Affinity.
- If you’re planning to buy soon, Cohen said to consider doing it now rather than waiting. “Now is always the time to buy. In my opinion there is some inventory and some small amount of possible negotiation and interest rates have come down quite a bit from their peak.”
- Assess your individual situation carefully when deciding whether to buy. “Factors like your current rent, lease terms, family needs, and existing mortgage rate (if you already own) should all play into your decision,” said Litvak. “There’s no one-size-fits-all answer – it depends on your specific circumstances.”
- “Be comfortable with your payment and don’t focus on the rate,” said Cohen. “Focus on payments. There are many creative mortgage products available.”
- Explore alternative mortgage products like two-one buydowns or interest-only loans. “These can help reduce your initial payments if you expect rates to decrease in the near future or if you plan to own the property for a shorter period,” said Litvak.
- Don’t wait for interest rates to reach extremely low levels (like 2-3%) again. Litvak doesn’t foresee rates returning to those levels. “Instead, anticipate rates potentially dropping below 6% in the near future, which could still present good opportunities for buyers.”
If you’re in the market, or were thinking about getting in, now’s the time to check out amNY Home Pros. You can find real estate agents, mortgage professionals, and lawyers who specialize in real estate transactions.
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