Good News for Buyers: Lower Interest Rates and More

Good news for buyers: mortgage rates fell sharply after government reports that inflation cooled last month. Yesterday we saw jumbo 30-year fixed rates (loans over $647K, most loans in NYC) of 5.5%. The average rate on a 30-year fixed conforming loan (under $647K) plunged 60 basis points, from 7.22% to 6.62%.

While the Manhattan market is still in "buyer's market" territory, it seems to be leveling off. Historically there are usually about 880 contracts signed in November. Right no we're on track to end up in that range.

Still, we can definitely feel that activity has slowed. Overall open house traffic is lighter. Last weekend about 39% of our colleague's open houses had zero attendees, and the average number of parties attending was 1.57. The recent flurry of price reductions (1,586 in the last 30 days, as compared to 1,399 new listings during the same period) is also revealing. As the holiday slowdown approaches, many sellers are anxious to accept an offer before it hits.

Lower rates, less competition for properties, and more negotiable sellers give buyers some real advantages. We'd recommend they take advantage of them. Please contact us and let's discuss how we can help you get your dream home.