How Are Higher Interest Rates Affecting the NYC Real Estate Market?

Interest rates have risen to over 7%. How is that affecting the New York City real estate market? It depends on who you ask. The market here tends to be driven more by seasonality than by interest rates, but that varies by price level. Not surprisingly, the under $1M market feels it the most and the over $4M feels it the least. The city also has a large percentage of cash buyers. The only effect they may feel is less competition for properties.

Mortgage brokers and loan officers I've spoken with are having different experiences. Some say that the number of buyers requesting pre-approvals is down. Others see business pretty much as usual. The consensus among agents also differs.

One thing seems pretty certain. No is expecting rates to come down again anytime soon. The prediction is they'll actually rise. Buyers with a real need to move - a growing family, a divorce, a professional relocation - may want to find a home and lock in their rate now, before it happens.