Real Estate Life With a Sub 6% Mortgage Rate

The Weekly Recap

Good morning and happy Friday! Rates are below 6% for the first time since 2022, NYC survived its second blizzard, NJ Transit is a nightmare, the White House shared more details on its institutional investor ban in housing, AMEX unveiled a plan to build a new tower in FiDi, the Gourmet Emporium at NYC’s famous Tin Building has shut down and is being replaced by a Balloon Museum as I’m sure you could’ve guessed and finding love via the swipe method may be a thing of the past.

If you missed last weeks newsletter on What Days on Market Can Really Tell You About a Listing? you can read that through the link.

Real Estate Life With A Sub 6% Mortgage Rate

If you bought during Covid and have a 2.5% mortgage rate, the title of this section may seem pretty ridiculous, but for many, now that rates are below 6% for the first time since 2022, its a dawn of a new era. For nearly three years, buyers have been sidelined by rate shock, sellers have been hesitant to move and the market has felt frozen in place. But as rates dip back below 6%, we’re starting to see momentum continue to pick up.

Psychology plays a huge role in real estate and buyers are re-engaging. Crossing below the 6% threshold is more than just a number, it’s a signal. Buyers who pressed pause are running new numbers. Monthly payments feel more manageable and conversations are turning into showings again.

While today’s rates may not compare to the ultra-low Covid era, they are far more approachable than the 7%+ environment we’ve been navigating.

Many homeowners felt “rate-locked,” unwilling to trade a 3% mortgage for something significantly higher. As rates soften, the gap narrows. That doesn’t eliminate hesitation, but it does reduce the sting so sellers are reconsidering their plans. We’re seeing more sellers testing the market, especially those whose life changes (relocation, upsizing, downsizing) can’t wait indefinitely.

When rates drop, even slightly, buyer activity tends to accelerate faster than inventory increases. That creates pockets of competition, especially for well-priced, move-in-ready homes. If you’re a buyer, this is a window of opportunity before demand surges further.
If you’re a seller, this is a strategic moment as motivated buyers are paying attention again.

For homeowners who purchased in the past two years, this rate movement could present future refinance opportunities if the trend continues. It may not be time yet for everyone, but it’s a conversation worth starting and monitoring.

No, we’re not back to 2.5%. And we may never see that environment again in the same way. But sub-6% rates represent progress and progress creates movement. Real estate doesn’t need perfect conditions to thrive. It needs confidence and confidence is beginning to return.

If you’re curious how this shift impacts your buying power, home value, or long-term plans, let’s connect and map out your options!

Market Performance

Here are how some other indexes and asset classes have performed as of this morning’s opening bell.

NYC Market Update

Here is a view of NYC market activity over the past week.

Mortgage Rate Update

For the first time in three and a half years, the 30-year fixed-rate mortgage dropped into the 5% range, falling even lower than last weeks milestone. A year ago at this point, rates were hovering around 6.75%.

News You Can Use

• White House Offers New Details on its Push to Ban Housing Investors Wall Street Journal

• Strong Earnings Not Enough to Push Past AI Uncertainty in Market Bloomberg

• US Q4 GDP Up 1.4% as PCE Inflation Remains Firm at 3% CNBC

• US Consumer Confidence Rises on Stronger Prospects for Jobs Bloomberg

• Trump’s 10% Levy Takes Effect As US Rebuilds Tariff Wall Bloomberg

• How Many Rate Cuts in 2026? Kalshi

• Wall Street Doesn't Know What to Think of AI Anymore Bloomberg

• American Express Unveils Plan to Build 55 Story Tower at WTC Site NY Post

• NYC Hit Hard by Winter Snowstorm, Here is the Aftermath Bloomberg

• NJ Transit Riders See Simple Commutes Turn Into Crowded Slogs Bloomberg

• Is the Swipe Era Over? New York Times

• Gourmet Emporium in NYC Tin Building to Be Replaced By a Balloon Museum NY Post

The Deep Insight

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Feel free to reach out to discuss more in-depth about your real estate goals, share your thoughts about my newsletter, or to share what you're experiencing in this market. Looking forward to hearing from you!