Will Interest Rates Fall in 2025—and Should You Wait to Buy?
Understanding Interest Rates and the NYC Housing Market
For anyone considering buying real estate in New York City, understanding interest rate trends is crucial. According to the latest CME FedWatch Tool data, there’s a possibility of a 25-basis-point rate cut in June—but beyond that, no major rate drops are expected anytime soon. The likelihood of returning to 3% mortgage rates remains low, which means buyers waiting for a significant drop might not see the opportunity they’re hoping for.
For anyone considering buying real estate in New York City, understanding interest rate trends is crucial. According to the latest CME FedWatch Tool data, there’s a possibility of a 25-basis-point rate cut in June—but beyond that, no major rate drops are expected anytime soon. The likelihood of returning to 3% mortgage rates remains low, which means buyers waiting for a significant drop might not see the opportunity they’re hoping for.
Federal Reserve Insights and Mortgage Rates
A recent Wall Street Journal article, “Fed Stands Pat on Rates Entering New Wait-and-See Phase”, highlights that the Federal Reserve remains committed to keeping rates steady unless inflation declines further. This means that mortgage rates in NYC will likely stay near their current levels for the foreseeable future.
For buyers considering New York City real estate, this signals that waiting for a substantial rate drop may not be a realistic strategy. Instead, evaluating home affordability based on your current financial situation is a more effective approach.
A recent Wall Street Journal article, “Fed Stands Pat on Rates Entering New Wait-and-See Phase”, highlights that the Federal Reserve remains committed to keeping rates steady unless inflation declines further. This means that mortgage rates in NYC will likely stay near their current levels for the foreseeable future.
For buyers considering New York City real estate, this signals that waiting for a substantial rate drop may not be a realistic strategy. Instead, evaluating home affordability based on your current financial situation is a more effective approach.
NYC Rental Market Predictions
For those debating between renting vs. buying in NYC, market trends suggest that rental prices in New York City will remain high. According to StreetEasy’s 5 NYC Housing Market Predictions for 2025, while rental price growth may slow, affordability challenges will persist.
Additionally, Forbes predicts that mortgage rates will keep many potential buyers in the rental market, driving demand and keeping NYC rent prices elevated. With both interest rates and rental prices expected to remain steady, those waiting for significant relief in either area may need to adjust their expectations.
According to Corcoran Market Research, rents were up 1.6% YoY in December 2024. Gramercy, SoHo, and Tribeca saw the most significant rent increases. Based on this data, you can also assess whether renting on purchasing works better for you in a particular neighbourhood.
For those debating between renting vs. buying in NYC, market trends suggest that rental prices in New York City will remain high. According to StreetEasy’s 5 NYC Housing Market Predictions for 2025, while rental price growth may slow, affordability challenges will persist.
Additionally, Forbes predicts that mortgage rates will keep many potential buyers in the rental market, driving demand and keeping NYC rent prices elevated. With both interest rates and rental prices expected to remain steady, those waiting for significant relief in either area may need to adjust their expectations.
According to Corcoran Market Research, rents were up 1.6% YoY in December 2024. Gramercy, SoHo, and Tribeca saw the most significant rent increases. Based on this data, you can also assess whether renting on purchasing works better for you in a particular neighbourhood.
Should You Wait to Buy a Home in NYC?
Trying to time the NYC real estate market for a major rate drop is risky. Market predictions frequently change due to economic shifts, inflation, and global events, making it difficult to predict the perfect moment to buy.
Instead of waiting for uncertain mortgage rate changes, the smarter approach is to assess your financial readiness, long-term housing goals, and current affordability. If you’re in a position to buy now, delaying could mean missing out on great opportunities, especially in highly competitive NYC neighborhoods.
Trying to time the NYC real estate market for a major rate drop is risky. Market predictions frequently change due to economic shifts, inflation, and global events, making it difficult to predict the perfect moment to buy.
Instead of waiting for uncertain mortgage rate changes, the smarter approach is to assess your financial readiness, long-term housing goals, and current affordability. If you’re in a position to buy now, delaying could mean missing out on great opportunities, especially in highly competitive NYC neighborhoods.
Get Expert Real Estate Guidance in NYC
Navigating the New York City real estate market requires access to the right information and expert advice. I can connect you with top mortgage professionals to explore financing options and provide detailed NYC market reports on specific neighborhoods. Whether you're looking for luxury apartments in Manhattan, investment properties in NYC, or a first-time home purchase, I can help you make the best decision based on real market data.
Navigating the New York City real estate market requires access to the right information and expert advice. I can connect you with top mortgage professionals to explore financing options and provide detailed NYC market reports on specific neighborhoods. Whether you're looking for luxury apartments in Manhattan, investment properties in NYC, or a first-time home purchase, I can help you make the best decision based on real market data.