Says This Will Be Caused by Interest Rates Falling Below 6%
Mortgage rates have fallen below 6% for the first time in more than three years — a psychological and financial milestone that could re-energize the spring housing market. But according to Joe Moshé, Broker/Owner of Charles Rutenberg Realty, Inc., the rate drop may spark renewed bidding wars across Long Island rather than bring relief to buyers.
Freddie Mac reported February 26 that the average 30-year fixed-rate mortgage dipped to 5.98%, down from 6.01% the prior week and 6.76% one year ago. The last time rates were below 6% was September 2022.
“For buyers who’ve been waiting on the sidelines, this feels like a green light,” said Moshé. “But lower rates don’t automatically create more homes for sale. When demand rises faster than supply, competition follows.”
Inventory Shrinks as Prices Continue to Climb
Data from OneKeyⓇ MLS shows Long Island’s inventory crunch remains acute:
- Nassau County:
- Median single-family home price rose 3.1% year-over-year in January to $835,000 (up from $810,000).
- Available homes fell 16.8%, from 1,799 last January to just 1,497 this year.
- Suffolk County:
- Median sales price increased 4.5% year-over-year, climbing from $670,000 to $700,000.
- Inventory dropped 17.1%, from 2,561 homes to 2,124.
With fewer homes on the market and improved borrowing power, Moshé warns the region could see intensified buyer competition this spring — particularly in neighborhoods closer to New York City, where price pressure has historically been strongest.
A Window of Opportunity — But Not for Long?
“On Long Island, prices and inventory remain the key drivers,” Moshé said. “Lower rates improve affordability on paper, but they don’t fix supply shortages. Buyers who are financially prepared may want to act before competition escalates.”
He advises both buyers and sellers to focus on hyperlocal trends rather than headlines alone.
“Interest rates matter, but so do weekly inventory levels, recent comparable sales, and seasonal momentum,” he added. “In this market, having real-time local data can make the difference between winning and losing a deal.”
As the spring market approaches, the sub-6% rate environment could mark a turning point — not toward a cooler market, but toward a faster-moving one.