Good news for homebuyers on Long Island: mortgage rates are trending down. For the sixth consecutive week, rates have declined, with the average 30-year fixed-rate mortgage falling to 6.76% as of February 27, 2025, down from 6.85% the prior week. This is below last year’s average of 6.94%. The 15-year fixed-rate mortgage also dipped to 5.94%, compared to 6.04% last week and 6.26% a year ago. Rates are now at their lowest since December 2024, offering a modest but welcome shift for the housing market.
“This week, mortgage rates decreased to their lowest level in over two months,” said Sam Khater, Freddie Mac’s chief economist. “The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home.” After peaking at 7.04% in mid-January 2025, rates have eased each week since, settling at 6.76% for a 30-year term. This gradual decline is sparking some renewed interest in home purchases and refinancing.
What Does This Mean for You?
This six-week drop isn’t a game-changer, but it’s a step in the right direction. Lower rates improve affordability slightly, making homes—like those along the South Shore or in Babylon Village—a bit more within reach. Compared to a year ago, today’s rates (6.76% for 30-year and 5.94% for 15-year) offer modest savings over time. Even the small 0.09% drop from last week on a 30-year loan can trim your interest costs.
At Jones Hollow Realty Group, we’re seeing this shift bring cautious optimism to the Long Island market. Buyers who paused during higher-rate months are starting to explore again, and improving inventory adds some flexibility. It’s not a dramatic turnaround, but it’s progress.
Why Consider Acting Now?
Rates can be unpredictable—January’s 7.04% peak proves that. While they’re moving downward now, waiting for bigger drops could mean missing today’s options as more buyers step in. If you’ve been on the fence about buying, this could be a practical moment to start looking, especially with rates below last year’s averages.
We’re Here to Guide You
At Jones Hollow Realty Group, we specialize in helping Long Island buyers navigate the market with clear, personalized advice. Serving the South Shore and beyond, we’ll connect you with the right properties and lenders to make the most of today’s rates. Thinking of buying? Give us a call at (631) 650-3977 or check out joneshollowrealty.com to get started. Let’s make this market movement work for you.