It’s still a tough time to get a foothold in the housing market, with homes sitting near record values and mortgage rates parked well above 6%. But the tide could turn in 2026, with property prices forecast to dip in 22 of the largest 100 U.S. cities and mortgage rates expected to ease slightly, according to a new analysis from Realtor.com.
The real estate market is expected to move in a more “buyer-friendly” direction next year, leading to the “most balanced housing market” since the pandemic, meaning that neither sellers nor buyers are likely to have the upper hand in negotiations, said Jake Krimmel, a senior economist at Realtor.com.
Mortgage rates are expected to dip to an average of 6.3% next year, a slight drop from 2025’s 6.6% average rate. Lower borrowing costs, as well as strong wage growth next year, should encourage more buyers to jump into the market, Krimmel added.
“2026 is going to be a year where we think the market is going to steady,” Krimmel said. “It’s going to show a lot of signs of getting back on track to what we consider to be normal.”
That will help push up existing-home sales, which are projected to increase less than 2% to 4.13 million properties in 2026, according to Realtor.com‘s report. That’s only a slight bump from this year’s projected 4.07 million home sales, but a notable change given that transactions have been relatively flat throughout 2025.
Zillow, another online real estate marketplace, also expects the housing market will ease for homebuyers as inventory grows and mortgage rates tick down. The company projects existing home sales will rise to nearly 4.3 million next year, up 4.3% from its projected total for 2025. Mortgage rates are likely to hover just above 6%, according to Zillow — higher than in recent years, but modest by historical standards.
Where will prices drop?
Most of the 22 cities where home prices are forecast to drop next year are located in the Southeast and the West. For instance, seven of the eight largest cities in Florida are projected to see declines in home prices next year, with the sole exception of Miami, the report said.
Homes around Cape Coral and Fort Lauderdale in Florida are expected to see the nation’s largest price decline next year, with homes dropping by 10.2%, the analysis says. That’s followed by the North Port-Sarasota-Bradenton, Florida region, with an 8.9% decline.
The cities with projected price drops include those where inventory has expanded, providing more choices for buyers, Krimmel said. Some of those metropolitan areas may now also have lighter demand from buyers compared with the COVID-era real estate boom, which was fueled by low mortgage rates and a shift to work-at-home policies.
“These places, among others, saw a huge frenzy during the pandemic, so part of what we are projecting is that demand continuing to come back down to earth,” Krimmel told CBS News.
Prices are expected to rise in the other 78 largest U.S. cities, but the hikes are likely to be small, with a median price gain of 4% across those locations.
To make its projections, Realtor.com examined inventory, new construction, price growth, wage and job growth, and unemployment across the 100 cities.
The Federal Reserve left interest rates untouched at its Open Market Committee meeting on Wednesday, the first time it hasn’t cut them since July.
In a statement after the meeting, the 12-member body said that while economic activity has been expanding at a solid pace, job growth has remained low, and inflation is “somewhat elevated.”
Two members appointed by President Trump — Stephen Miran and Christopher Waller — voted against the decision to leave the target range for the federal funds rate at 3.5% to 3.75% because they wanted another cut, while the rest voted in favor of it.
The Fed has a dual mandate to achieve maximum employment and keep inflation below 2%.
“Uncertainty about the economic outlook remains elevated,” the Fed said. “The Committee is attentive to the risks to both sides of its dual mandate.”
The Fed began cutting rates in September after the nation’s economic outlook began to soften. The housing industry has been eager for more cuts to help improve affordability, which has stymied the pace of home sales over the last couple years. Observers expect the Fed to cut rates at least 0.25% this year.
“While the Federal Reserve is maintaining interest rates in order to try to bring inflation levels closer to its target, uncertainties surrounding the economy remain elevated,” Cotality Chief Economist Selma Hepp said. “The job market remains a sticking point, even though the economy as a whole remains on solid ground. With tariffs continuing to impact pricing on so many consumer products, pressure will remain to find stronger solutions that would help lower the cost of everyday items for families.”
HELOC and home equity loan rates range from near 7% to 9% nationally, settling in with an average near 7.5%. Second mortgage rates are at a multi-year low, making this an opportune time to cash out some of the value in your home.
According to Curinos data, the average monthly HELOC rate has fallen to 7.25%, down 19 basis points from one month ago. The national average rate on a home equity loan is 7.56%, down three basis points.
The Federal Reserve estimates that homeowners have $34 trillion dollars of equity locked within the walls of their homes. With mortgage rates refusing to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustration of not being able to access that growing value in their home. A second mortgage in the form of a HELOC or HEL can be a workable solution.
Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen recently to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.
A home equity loan may have a different margin because it is a fixed-interest product.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a higher rate.
Again, because a home equity loan has a fixed rate, it’s unlikely to have an introductory “teaser” rate.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Look for a lender offering a below-market introductory rate. For example, FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for 12 months on a line up to $500,000. That introductory rate will convert to a variable rate. When shopping for lenders, be aware of both rates.
Also, pay attention to the minimum draw amount of a HELOC. The draw is the amount of money a lender requires you to initially take from your equity.
The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
And as always, compare fees and the fine print of repayment terms.
Rates vary from one lender to the next — and by where you live. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. The national average for a HELOC is 7.25%, and for a home equity loan is currently 7.56%.
For homeowners with low primary mortgage rates and a significant amount of equity in their house, it’s likely one of the best times to obtain a HELOC or home equity loan. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year HELOC draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.
The national average rate for second mortgage products, such as home equity loans and lines of credit, continues to hold close to multi-year lows. The prime rate, a benchmark for home equity lending, isn’t expected to move lower anytime soon, as the Federal Reserve ponders its next interest rate move.
According to Curinos data, the average HELOC rate is 7.25%, down 19 basis points from last month. The national average rate on a home equity loan is 7.56%, three basis points lower than one month ago.
Homeowners have an impressive amount of value tied up in their houses — nearly $34 trillion at the end of the third quarter of 2025, according to the Federal Reserve.
With mortgage rates remaining in the low-6% range, homeowners are unlikely to let go of their primary mortgage anytime soon, so selling a house may not be an option. A cash-out refinance might not be workable either. Why give up your 5%, 4% — or even 3% mortgage?
Accessing some of that value with a use-it-as-you-need-it HELOC or lump-sum home equity loan can be an excellent alternative.
Home equity interest rates are calculated differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which is 6.75% following the last Federal Reserve rate cut on December 10. If a lender added 0.75% as a margin, the HELOC would have a variable rate of 7.50%.
A home equity loan may have a different margin, because it is a fixed-interest product.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. Shop a few lenders to find your best interest rate offer.
With three rate cuts from the Federal Reserve in 2025, the prime rate has fallen to 6.75%. As a result, home equity lenders have been repricing their products.
Today, FourLeaf Credit Union is offering a HELOC APR (annual percentage rate) of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate at a later date.
As the offer proves, lenders will not only lower their adjustable rates, but their introductory rates too, following the Fed’s lower-rate policy.
When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. Currently, the national average for a HELOC is 7.25%, and for a home equity loan it’s 7.56%.
Interest rates fell for most of 2025. They will likely keep dipping lower this year. So yes, it’s a good time to get a second mortgage. And with a HELOC or a HEL, you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Or just about anything else.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period of time.
President Trump signed an executive order this week aimed at boosting the housing market. The goal is to increase the supply of homes available to buy by preventing big investors from purchasing single family homes for the rental market. CBS News business analyst Jill Schlesinger explains.
Homebuilder confidence started the new year on a soft note, as buyers remained constrained by affordability issues despite mortgage rates hitting a three-year low.
Builder confidence in the market for newly built single-family homes slid to 37 in January, down two points from December, the National Association of Home Builders reported, citing the NAHB/Wells Fargo Housing Market Index (HMI).
“While the upper end of the housing market is holding steady, affordability conditions are taking a toll on the lower and mid-range sectors,” said NAHB Chairman Buddy Hughes, a homebuilder and developer from Lexington, North Carolina. “Buyers are concerned about high home prices and mortgage rates, with downpayments particularly challenging given elevated price-to-income ratios.”
On a positive note, the average 30-year mortgage rate fell to 6.06% as of Jan. 15, its lowest rate in three years and almost 1% below the same period last year, NAHB Chief Economist Robert Dietz said.
Most responses to the homebuilder survey were received before the announcement that Fannie Mae and Freddie Mac would purchase $200 billion of mortgage-backed securities in an effort to further trim borrowing costs, NAHB noted.
The HMI gauging future sales expectations fell three points to 49, while the component measuring current sales conditions fell one point to 41, and the index charting prospective-buyer traffic fell three points to 23.
“The future sales component of the HMI dipped below 50 for the first time since September, indicating that builders continue to face several issues that include labor and lot shortages as well as elevated regulatory and material costs,” Dietz said.
The survey also found that 40% of respondents reported cutting prices in January, the same level as December.This marks the thirdconsecutivemonth since May 2020 that the share has been 40% or higher, NAHB said. The average price reduction rose to 6% from 5% in December, while the use of sales incentives was 65%, the 10th consecutive month above 60%.
Regionally, the three-month averages for the HMI scores were mixed, with the Midwest flat at 43, the Northeast dropping two points to 45, the South sliding a point to 35, and the West rising one point to 35.
Each month, NAHB/Wells Fargo surveys builders, asking them to rate single-family home sales over the next six months as good, fair or poor. It also asks builders to rate traffic of prospective homebuyers as “high to very high,” “average” or “low to very low.” Scores are then calculated, and any number above 50 indicates that more builders view market conditions as good/high than poor/low.
The average interest rate on a conventional mortgage in the U.S. dropped to 6.06%, the lowest level in more than three years, Freddie Mac said on Thursday.
A recent dip in mortgage rates has spurred homebuying activity, with purchase applications on the rise and more owners acting to refinance their loans, according to the government-sponsored enterprise.
A year ago, the rate on a 30-year fixed-rate mortgage averaged 7.04%. The last time the rate on a typical mortgage was lower was Sept. 15, 2022, when it was at 6.02%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, dropping to 5.38% from 5.46% last week. A year ago, that average rate was at 6.27%, Freddie Mac said.
Mortgage rates began ticking down in July in anticipation of a series of interest-rate cuts by the Federal Reserve, which began in September and continued last month.
Although the central bank doesn’t set rates for home loans, trimming its benchmark rate often points to lower inflation or softer economic growth, spurring investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates.
Although mortgage rates are easing, homeownership remains beyond the means of many Americans.
A January report from Attom, a provider of property data, found that median-priced homes are less affordable than usual in 99% of the 594 counties for which sufficient data were available. The national median home price has hovered around $365,000, which is a record high, the group noted.
“Many Americans were priced out of buying a home in 2025, and affordability remains worse than historic norms in most markets,” Attom CEO Rob Barber said in a statement earlier this month.
The cost of a typical home has climbed 54% of the past five years, while typical wages have risen 29%, the group also noted, citing federal labor data.
Trump’s housing proposals
President Trump last week announced two measures aimed at promoting homeownership, proposing to bar institutional investors from buying homes and also directing the federal government to purchase $200 billion worth of mortgage bonds.
Experts said the proposed ban could ease pressure on home prices, citing research showing that large investors can drive up home prices in communities where they invest.
Ben Ayres, a senior economist at Nationwide Economics, has estimated that the government buying $200 billion in mortgage securities could reduce home loan rates by up to 0.35 percentage points,
Home prices have also surged because of a dearth of affordable housing. The U.S. would need to build as many as 4 million additional homes beyond the normal pace of construction to address that shortage, according to Goldman Sachs.
Christy Bunce, president of mortgage lender New American Funding, told CBS News that more prospective buyers entering the market would drive up home prices. “But I don’t think we are in a market where we’re going to see crazy appreciation,” she added.
Lower mortgage rates also present an opportunity for current homeowners to refinance their loans, Bunce added.
“It’s a good time to refinance, because nobody has a crystal ball to figure out what rates are going to do in the future,” she told CBS News.
Erik Schmitt, a Chase Home Lending executive, said that homeowners “may be able to significantly reduce their monthly mortgage payment or shorten their loan term” as borrowing costs ease.
“That said, it’s important for homeowners to factor in closing costs, how much remains on their loan balance, and overall financial and life goals when considering whether to refinance,” he noted.
In August 2023, the U.S. Federal Reserve concluded an aggressive campaign to hike interest rates, which sent the cost of a mortgage skyrocketing to the highest level in two decades. The goal was to tame a soaring inflation rate, and thankfully, it worked, so the Fed has now cut interest rates six times since September 2024.
That isn’t fast enough for President Donald Trump, though, who regularly calls for the Fed to cut rates more quickly to bring relief to homeowners. However, he might have found a workaround, as last Thursday, he instructed his representatives to purchase $200 billion worth of mortgage-backed securities (MBSes). These bonds hold thousands of mortgages and are sold to investors.
As is the case with all bonds, a sudden flurry of buying activity will increase the price of each MBS, while decreasing its yield. A lower yield, in theory, will translate to lower interest rates on mortgages, thus helping Trump achieve his goal without help from the Fed.
Federal Housing Finance Director Bill Pulte said government-controlled enterprises Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) will carry out the $200 billion in MBS purchases in the public market.
Image source: Getty Images.
Existing home sales in the U.S. are currently hovering near a five-year low, and according to Redfin, there were 529,770 more sellers than buyers in November. Elevated interest rates have reduced the borrowing capacity of first-time home buyers, shutting many of them out of the market.
Additionally, many existing homeowners are locked into 30-year mortgages at significantly lower interest rates than what is currently available, so even if they wanted to upgrade or downsize, moving isn’t a financially sound decision at this time. That takes even more would-be buyers out of the market. It’s very hard for real estate brokers to deliver sales in this environment, especially at favorable prices.
Douglas Elliman(NYSE: DOUG) is America’s fifth-largest real estate brokerage company, but it’s one of the leaders in luxury markets in California, Florida, New York, Texas, and more. It was founded in 1911, so it has over a century of experience navigating the peaks and troughs of the housing market.
Douglas Elliman currently employs 6,600 brokers in 113 offices across America, and they sold $30.1 billion worth of real estate during the first three quarters of 2025 (ended Sept. 30). That was up 9% from the year-ago period, so the company is still growing despite the tough market conditions, which speaks to the quality of its business.
Douglas Elliman stock soared by 42% during 2025, crushing the S&P 500 index, which was up just 17%. I bought the stock last year because the Fed was cutting interest rates, which I felt would be great for its business. The Trump administration’s decision to buy $200 billion worth of MBSes to lower mortgage rates only adds fuel to my bullish thesis.
If it jump-starts the real estate sector as intended, Douglas Elliman’s sales growth could accelerate as we progress through 2026, which would be a further tailwind for its stock.
Based on Douglas Elliman’s trailing-12-month revenue of $1.03 billion and its current market capitalization of $220 million, its stock is trading at a price-to-sales (P/S) ratio of just 0.2. That is a steep discount to its peak of 0.8, which was set during the last housing boom in 2021. I’m not suggesting the stock will get back there, but it would result in a fourfold return for investors if it did.
Douglas Elliman is also much cheaper than its core rival, Compass, which has a P/S ratio of 1. Compass is America’s largest residential real estate brokerage company, so you could argue it deserves a premium valuation to some degree, but I think the substantial gap leaves plenty of room for Douglas Elliman to gain ground. In fact, just three years ago, they were actually similarly valued.
Even if Trump’s new plan doesn’t have a material effect on the housing market, the Fed is expected to cut interest rates two more times during 2026 anyway. Additionally, Trump will have the opportunity to appoint a new Fed chairman in May, who may share his view that rates should be significantly lower.
Therefore, I believe Douglas Elliman stock is poised to be a significant winner in 2026.
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Anne Hartnett Hi, I’m Anne Hartnett with Agent Publishing. Today we’re taking a closer look at what the 2026 housing market may actually look like based on the latest forecasts coming from across the industry. I’m joined today by Matthew Gardner, chief economist at Gardner Economics, to break down where those predictions align, where they differ, and what they really mean to real estate professionals heading into 2026. Thanks for joining me today, Matthew.
Matthew Gardner You are welcome, and good to see you again.
Hartnett Almost every forecast agrees more homes will sell in 2026. The disagreement isn’t if — it’s how fast. What’s driving that range of optimism and what ultimately determines how quickly transaction volumes will actually return?
Gardner That’s a great question, and to be honest with you, it couldn’t really get any worse. The last couple of years, sales have been really remarkably, remarkably low. So why are we going to see a change in that? Well, there’s a couple of reasons, one of which is I expect to see inventory levels rise a bit more. Therefore, there’s going to be more choice in the marketplace. That obviously is a good thing. But more importantly, I think, is that I expect that home sellers, they’re going to start becoming a little bit more, shall we say, realistic when it comes to the value of their homes. So if you start seeing some lower asking prices, well, naturally you can have home buyers or potential buyers watching, and I think we’re going to see increased sales because of that. But I also see there’s one other driver that no one’s really talking about. And that is going to come in the form of who I call “fence sitters.” Now, these are would-be buyers, and they’ve been waiting on the sidelines. And quite frankly, they’ve been waiting for one thing to happen, and that’s a housing market that’s going to collapse, and therefore they could pick up a home remarkably cheaply. Well, I think they’re now saying, well, maybe they know that’s not going to happen and the market’s not going to implode. And because of that I think they’re going to start getting more active in the marketplace as well. So when you combine greater inventory but more importantly greater demand, that means I expect to see a decent but not huge jump in the number of sales in 2026 over 2025 levels.
Hartnett The industry agrees prices will hold, not surge, signaling balance, not distress. Is 2026 the year we finally stop talking about price acceleration and start talking about price normalization?
Gardner I’m not sure that 2026 will be best described as balanced. Because I think there’s going to be plenty of markets where affordability is still going to be a very significant issue. And there are also others where we haven’t seen price drops, quite frankly, bottom out. That said, I certainly see prices being able to rise nationally a little bit more. Yes, it’ll be somewhat modest growth, and the reasons for that are going to be somewhat similar for the reasons that I expect sales to increase. Greater confidence in the marketplace will be one. We’re also seeing modestly lower borrowing costs and improving affordability in certain markets, but mainly it’ll be improving affordability because asking prices are quite likely to pull back a little bit further. And price growth also, it will go up a bit nationally, but it’s going to vary fairly significantly by region. And I expect that home prices in the Midwest, which is classically more affordable than the rest of the country, I think they can raise quite nicely, but they’ll be very modest gains in the northeast and in the south, while out west, where prices actually declined in 2025, I see them turning modestly positive in 2026. So the bottom line here, as far as I see it, is that incomes will be rising, likely a little bit faster than home prices. That’s good for affordability, but I think it’s going to take several years of this trend of very low price growth and far higher wage growth. Before we can say that the market is even close to being normal. I just don’t see that happening for quite some time. And because of that, I think it’s still going to be a fairly hard environment for all those would-be first-time buyers out there.
Hartnett Most organizations are predicting rates in the low- to mid-6% range. Matthew, you predict the lowest rate of 5.9% by Q4 2026. What’s driving that outlook and what would need to happen for rates to move meaningfully lower or higher?
Gardner Well, the primary reason that I think the rates can drop from where they are today is that although I don’t see bond yields moving much, and as we all know, mortgage rates are based on the yield on ten-year treasuries. But what we have seen is the spread between ten-year paper and mortgage rates tighten and really kind of start heading back closer to the historic average the spread was between them — that 1.8%, 1.9%. So what that means is we could actually see bond yields not move very much at all. But mortgage rates can come down if that spread continues to narrow. So yes, I think that we could likely — not guaranteed — possibly getting just marginally below 6% by the end of 2026. Now, what it would take to move significantly below that? Well, I mean, I’d be careful what I wish for. And the reason I say that is that if rates are going to drop down or could drop down into, let’s say, the mid- or low-fives, well, it would likely mean we are already in a very significant economic contraction, AKA a recession. So be careful what you wish for. On the other side of the equation, rates moving palpably higher — I really don’t see any reason for that to happen. It certainly could, and it would have to be because yields on treasuries have jumped, and that would only come from one reason and one reason alone. And that is a lack of belief in U.S. debt. I’m hopeful that that will not be the case. So because of all these factors, yes, I think modestly lower rates. Yes, I think we can get into the high fives. But I certainly do not expect rates to move significantly higher from where they are today.
Hartnett NAR stands out with a forecast of 14% sales growth, roughly double what many portals and economists are predicting. Why is NAR so much more optimistic on transaction volume, and do you think that optimism is warranted?
Hartnett Oh, I do like Laurence [Yun], however, and I say that chief economist, a nice guy. But, I really, quite frankly, don’t share his optimism. Now, it is interesting, though. I mean, most of us are looking in that 2% to 4% growth. I’m a bit more bullish than that, but no one’s in double digits. Now reading what he has put out, what NAR’s published, is that he’s looking at, quite frankly, the same reasons that I see sales able to rise in 2026: falling mortgage rates and higher inventory levels unlocking, in his opinion, pent-up buyer demand. But I mean, a 14% increase means to me that — rough math — we’d have to see sales transactions jump by close to 600,000 units. I admire his enthusiasm and his optimism, but I quite frankly don’t see any reason that would happen other than a very, very significant downturn in overall prices or in mortgage rates. And because I don’t expect to see that occurring, I think he’s a bit optimistic. But you know what — and as always — time will tell.
Hartnett Most forecasters offer fairly tight ranges for mortgage rates, but Compass predicted a wide band, from roughly 5.9% to 6.9%. Does that reflect increased caution, or simply a more realistic view of volatility?
Garder Well, I mean that obviously a very significant range that they’ve put out there, and I think that their position, and certainly I don’t want to talk for them, is that they’re offering really two scenarios: a bullish scenario, whereby we could see, mortgage rates drop down below 6%, or a bearish one, meaning that we could say rates jump up to, I think they said 6.9%. And they did the same thing with sales, which they forecast being somewhere from sales falling by 3.6% or rising by 4.6%. I think that what they’re looking at as far as mortgage rates go is that they’re looking at ten year treasuries, which is appropriate. They’re saying that could range from 4% to 4.8%. Therefore that means that mortgage rates will come in at that 5.9% to 6.9%. But they do give a single number, which is in essence the average of the two, so really they’re saying 6.4%, but at a very wide average. Now, if the economy slows as we talked about, are we heading to a recession? Certainly. Rates can drop because we will see a big move out of people moving money out of equities and into fixed income, into bonds. That means the bond price goes up and the yield comes down. So that could happen, but if rates are rising under that scenario that he’s suggesting, is that we could see potentially if the market is going to be better, or the economy is going to be better, meaning we’re seeing more robust employment growth but also we’re seeing inflation moving potentially back up from where it is today. Well, that means likely the Fed would start to jump in. They would possibly look to increase the Fed funds rate. And as much as the Federal Reserve do not control interest rates, they can certainly have a — they can form a direction for them. They can impact them to a degree. So I think that that is a big range, certainly, but I’m looking at it on both sides of the coin, right? Good market or a bad market. But I wouldn’t say that it is more realistic, because I do not expect to see a lot of volatility in rates in 2026. In fact, in 2025, we saw the lowest volatility levels, as in, the annual high and low of rates, we’ve seen in many years. So less volatile. I think they’re just looking at, it could be this, but it could be that.
Hartnett Matthew, your optimistic forecast combines three things we don’t often see together: rising sales, improving affordability and moderate price growth. What makes that combination possible in 2026, and what would need to go wrong for that outlook to change?
Gardner Well, yes, I certainly, when it comes to the U.S. housing market I am, for want of a better word, a glass-half-full economist. Well, I mean, as we discussed, my forecasts, other than for rates to fall a bit more than others expect, I’m not really far adrift from the consensus. Sales in 2023 and 2024 weren’t only disappointing, but they were well below the average levels we’ve seen from, you know, a 20 year period from 1989 to 2019. Sales over the last two years were below the number that we saw during the financial crisis. So can we get better? Well, it’s very hard to get worse. But the biggest thing is that the big numbers, the huge levels of sales we saw in 2020, certainly in 2021, that pulled a lot of demand forward. And of course, rates jumped in 2022, which, when you think about it, if you’ve got less demand because people had already bought, you’ve also seen mortgage rates doubling, that’s going to slow the market down even further. That caused a drag on sales. I think we’re over that now and we’re starting or continuing to create new households again. I think we’ve got a market out there that is now saying, well, I was hoping for rates to drop back down to 5 or 4% again. I know that’s not going to happen. Therefore, I’m going to buy now because for a lot of people, quite frankly, even if we see a very modest increase in sale prices, there’s going to be a share of people that if they don’t buy now, they won’t be able to afford to buy later on. So I think there’s going to be better demand. So we can see rising sales because of better demand. Moderate price growth — well, we can see modest price growth even though there are some issues with affordability, because the affordability concern comes very much — and it’s very much centered around — first-time buyers. You see, for us that have owned our homes for a reasonable length of time, we’ve made a bunch of money on it and affordability is less of an issue. But the affordability improving can come from lower asking prices. So I think you can actually see sales rising, modest price growth and affordability improving. But again, it’s going to be very much geographically defined. But those things can happen, and I believe that they will.
What would need to go wrong for my outlook to change? Yes, it would have to be rates for some reason or other jumping up. I find that remarkably unlikely. I don’t think that would happen. Price growth jumping to a point whereby affordability declines further? I don’t see that happening either. So I think all in all, modest improvement across the board is one that is the most likely scenario. But of course, who knows what might come around the corner. Certainly, I think that comments being made by the administration could have an impact on the equity markets and on the global markets as well, so not sure about that. We’ve obviously got a new fed chair coming in. We don’t know who it is, although I’ve got a pretty good guess. And so there’s going to be some concerns there as to whether the Fed will continue to be independent. That can have an issue on financial markets as well. So there are some geopolitical potential hiccups out there, but but in general, I believe that as long as we do not head into any form of major economic downturn, slow and steady is the way.
Hartnett All right Matthew, to wrap this up, if you had to describe the 2026 housing market in one word, what would it be and why?
Gardner I would say clarity. Yes, clarity. And why would I say that? I think that there’s a lot of uncertainty, really, quite frankly, going through Covid, coming out of Covid. We weren’t sure what was going to be happening. We saw rates plummet. Wonderful. But then they skyrocketed. Not good. People out there saying, isn’t this 2008 all over again? So I think that, yeah, I think that the market will be less opaque, in 2026. We’ll see some more clarity. And again, for people understanding the fact that for 98% of us, buying a home is the most expensive thing we ever buy in our lives, but if we’re making that decision, we want to be sure about it. So I think we’ll see more clarity and clarity will allow, I believe, prices to rise, transactions to rise. Not to the levels that I’m sure brokers would like, but they will be better in 2026 than 2025 because there will be, from a buyer’s perspective and indeed from a seller’s perspective, more clarity in the U.S. housing market.
Hartnett All right, Matthew, thanks for breaking this down. And for all our sakes, fingers crossed that your predictions, your optimistic predictions, come true.
Gardner I’m always helpful — hopeful, as well as helpful. But I appreciate that, Anne, and everyone out there have a great new year. Take care.
The national average rate for home equity lines of credit (HELOC) fell to a new low in well more than a year. The average home equity loan rate is down three basis points from last month.
According to Curinos data, the average HELOC rate is 7.25%, down 19 basis points from last month. The national average rate on a home equity loan is 7.56%, three basis points lower than one month ago.
Homeowners have an impressive amount of value tied up in their houses — nearly $36 trillion at the end of the second quarter of 2025, according to the Federal Reserve. That’s the largest amount of home equity on record.
With mortgage rates remaining in the low-6% range, homeowners are unlikely to let go of their primary mortgage anytime soon, so selling a house may not be an option. A cash-out refinance might not be workable either. Why give up your 5%, 4% — or even 3% mortgage?
Accessing some of that value with a use-it-as-you-need-it HELOC or lump-sum home equity loan can be an excellent alternative.
Home equity interest rates are calculated differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which is 6.75% following the last Federal Reserve rate cut on December 10. If a lender added 0.75% as a margin, the HELOC would have a variable rate of 7.50%.
A home equity loan may have a different margin, because it is a fixed-interest product.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. Shop two or three lenders to find your best interest rate offer.
With three rate cuts from the Federal Reserve in 2025, the prime rate has fallen to 6.75%. As a result, home equity lenders have been repricing their products.
Today, FourLeaf Credit Union is offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate at a later date.
As the offer proves, lenders will not only lower their adjustable rates, but their introductory rates too, following the Fed’s lower-rate policy.
When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. Currently, the national average for a HELOC is 7.25%, and for a home equity loan it’s 7.56%.
Interest rates fell for most of 2025. They will likely keep dipping lower this year. So yes, it’s a good time to get a second mortgage. And with a HELOC or a HEL, you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period of time.
National average rates for home equity lines of credit (HELOCs) and home equity loans (HELs) are well under 8%, the lowest in more than 36 months. Of course, home owners with the most equity in their homes — and the best credit — earn the lowest rates.
According to real estate analytics firm Curinos, the average HELOC rate is 7.44%. The national average rate on a home equity loan is 7.59%. Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.
With primary home mortgage rates refusing to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustation of not being able to access that growing value in their home.
For those who are unwilling to give up their low home loan rate, a home equity line of credit or home equity loan can be an excellent solution.
The Federal Reserve estimates that homeowners have $36 trillion dollars of equity locked within the walls of their homes. A second mortgage HELOC or HEL allows U.S. homeowners to tap into the record-setting equity they have accumulated.
Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.
HELs don’t usually have introductory rates, so that’s one less variable to deal with. The fixed rate you earn on a home equity loan won’t change over the life of the agreement.
You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Meanwhile, you’re paying down your low-interest-rate primary mortgage.
Today, LendingTree is offering a HELOC APR as low as 6.36% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.
The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
And as always, compare fees and the fine print of repayment terms.
The national average for a HELOC is 7.44% and for a home equity loan is currently 7.59%. However, rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.
For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC or a home equity loan. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.
30-year fixed mortgage rates dropped to about 6.15%, the lowest since September 2022
Some lenders are advertising rates as low as 5.75% for qualified buyers
Nassau County median home price reached $840,000; Suffolk hit a record $725,000
Long Island housing inventory remains historically low, limiting affordability and sales
Prospective homebuyers are starting the new year with a glimmer of hope, as mortgage rates have dropped to their lowest levels in three years, though high Long Island home prices continue to hamper housing market activity.
The average rate for a 30-year fixed-rate mortgage is now just north of 6 percent, which is lower than any point in 2025 and the lowest since Sept. 2022, according to Bankrate.com.
The average rate on 30-year fixed home loans decreased to 6.15 percent for the week ending Dec. 31, according to Freddie Mac. By comparison, rates averaged 6.91 percent during the same period in 2024.
While rates vary based on credit scores, down payment and upfront points, lenders are now advertising 30-year fixed-rate loans as low as 5.75 percent (U.S. Bank), 5.825 percent (Guaranteed Rate), 6 percent (M&T) and 6.125 percent (Bank of America and Wells Fargo).
And though mortgage rates have been considered high in the last couple of years when compared with the ultra-low COVID-era rates, the 30-year fixed-rate mortgage rate actually averaged 7.7 percent from 1971 through 2025, according to TradingEconomics.com, with an all-time high of 18.63 percent in Oct. 1981 and a record low of 2.65 percent in Jan. 2021.
But despite the lower rates, homebuyers on Long Island are still stymied by record high home prices, which mortgage brokers say is the biggest obstacle facing the housing market, especially for younger buyers just starting out.
The median price of closed single-family home sales in Nassau County in November was $840,000, which was $3,000 more than the October median price of $837,000 and 8.4 percent higher than the $775,000 median price recorded in Nov. 2024, according to numbers from OneKey MLS.
In Suffolk County, the median price of closed single-family home sales in November was an all-time high of $725,000, an increase of $24,000 from the previous month and 11.1 percent higher than the $652,500 median price of a year ago.
Housing industry observers say home prices are rising because the number of available homes for sale is so low.
There were 5,114 Long Island homes, including single-family, condos and co-ops, listed for sale with OneKey MLS at the end of November—2,159 in Nassau and 2,955 in Suffolk. That’s 669 fewer homes than were listed for sale the previous month, and 13.4 percent fewer than the 5,899 homes that were listed for sale at the end of Nov. 2024.
As a further illustration of the historically low inventory, when mortgage rates in Nov. 2008 matched the current rates, there were 23,367 Long Island homes listed for sale with MLS, four-and-a-half times as many as this past November.
Jesse Sasso, branch manager and loan officer at Contour Mortgage in Huntington, told LIBN last year that the mortgage rate isn’t impacting demand from prospective homebuyers, though prices certainly are.
“They’re way more concerned with the prices now. And I think that that’s going to have to come to a head,” Sasso said. “The inventory has got to increase. If the inventory doesn’t increase, it’s simple supply and demand. And if the availability doesn’t increase, then the values are going to continue to increase. People are just going to pull back from buying, regardless of the rates.”
Kevin Leatherman, owner-broker at Leatherman Homes in Rockville Centre, told LIBN last month that lower mortgage rates are a double-edged sword.
“The challenge is, when the mortgage rates go down, you’re going to have more competition,” he said, adding that a rate drop could precipitate a rise in inventory. “I think until you have a situation where the current mortgage rate is closer to the rate that somebody’s currently paying, the spread has to narrow in order to get more sellers into the market.”
The average rate on a 30-year U.S. mortgage fell to its lowest level of 2025 this week, a boost for prospective home buyers.
The average long-term mortgage rate dipped to 6.15% from 6.18% last week, mortgage buyer Freddie Mac said Wednesday. That’s the lowest average long-term rate since October 3, 2024, when it dipped to 6.12% before shooting back up. One year ago, the rate averaged 6.91%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, fell this week to 5.44% from 5.5% the previous week. A year ago it averaged 6.13%, Freddie Mac said.
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The 10-year yield was at 4.14% at midday Wednesday, down a touch from last week’s 4.15%.
Mortgage rates began easing in July in anticipation of a series of Fed rate cuts, which began in September and continued this month.
The Fed doesn’t set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates.
Even so, Fed rate cuts don’t always translate into lower mortgage rates.
Home shoppers who can afford to pay cash or finance at current mortgage rates are in a more favorable position than they were a year ago. Home listings are up sharply from 2024, and many sellers have resorted to lowering their initial asking price as homes take longer to sell, according to data from Realtor.com.
Sales of previously occupied U.S. homes rose in November from the previous month, but slowed compared to a year earlier for the first time since May, despite average long-term mortgage rates holding near their low point for the year. Through the first 11 months of this year, home sales are down 0.5% compared to the same period last year.
Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.
The national average home equity line of credit interest rate continues to fall. For 2026, the year will begin with the lowest HELOC rates in more than three years. That’s a hugh advantage that homeowners looking to access the value in their homes will have in the new year.
According to Curinos data, the average monthly HELOC rate is 7.44%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.
With mortgage rates refusing to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustation of not being able to access that growing value in their home.
For those who are unwilling to give up their low home loan rate, a home equity line of credit can be a workable solution.
The Federal Reserve estimates that homeowners have $36 trillion dollars of equity locked within the walls of their homes. A second mortgage HELOC allows U.S. homeowners to tap into the record-setting equity that has accumulated.
HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.
You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Meanwhile, you’re paying down your low-interest-rate primary mortgage.
Today, LendingTree is offering a HELOC APR as low as 6.36% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.
And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.
Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.
For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.
As the national average home equity line of credit interest rate continues to fall, homeowners are finding a HELOC to be a welcome holiday cash flow solution. With pricing as low as it’s been in three years, based on the prime rate, a HELOC is more affordable these days too.
According to Curinos data, the average weekly HELOC rate is 7.44%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.
Homeowners had nearly $36 trillion of value in their homes at the end of the second quarter of 2025, according to the Federal Reserve. That’s the largest amount of home equity on record.
With mortgage rates still lingering above 6%, homeowners are not likely to let go of their primary mortgage anytime soon, so selling a house or getting a cash-out refinance may not be an option. Why give up your 5%, 4% — or even 3% mortgage?
Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.
HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.
You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Meanwhile, you’re paying down your low-interest-rate primary mortgage.
Today, LendingTree is offering a HELOC APR as low as 6.36% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.
And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.
Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.
For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.
Nationally, the average home equity line of credit interest rate remains under 8%, according to the analytics company Curinos. With the holidays looming, a HELOC can be an excellent source of cash when you need it most.
According to Curinos data, the average weekly HELOC rate is 7.64%, its lowest point so far in 2025. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.
Homeowners have a huge amount of value tied up in their houses — nearly $36 trillion at the end of the quarter of 2025, according to the Federal Reserve. That’s the largest amount of home equity on record.
With mortgage rates lingering above 6%, homeowners are not likely to let go of their primary mortgage anytime soon, so selling a house or getting a cash-out refinance may not be an option. Why give up your 5%, 4% — or even 3% mortgage?
Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.
HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has fallen recently to 7.00%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.75%.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.
You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.
Today, LendingTree is offering a HELOC APR as low as 6.38% on a credit line of up to $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.
And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.
Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.
For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.
Mortgage rates have made fractional moves up and down for weeks without much change. According to Zillow data, the current 30-year fixed mortgage rate is 6.11%. The 15-year fixed rate is 5.62%.
Here are the current mortgage rates, according to the latest Zillow data:
30-year fixed: 6.11%
20-year fixed: 5.94%
15-year fixed: 5.62%
5/1 ARM: 6.17%
7/1 ARM: 6.08%
30-year VA: 5.58%
15-year VA: 5.33%
5/1 VA: 5.32%
Remember, these are the national averages and rounded to the nearest hundredth.
These are today’s mortgage refinance rates, according to the latest Zillow data:
30-year fixed: 6.28%
20-year fixed: 6.19%
15-year fixed: 5.73%
5/1 ARM: 6.40%
7/1 ARM: 6.43%
30-year VA: 5.64%
15-year VA: 5.30%
5/1 VA: 5.35%
Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.
Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments.
You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use. It also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.
The average 30-year mortgage rate today is 6.11%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan.
The average 15-year mortgage rate is 5.62% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.
A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time.
Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.11% rate, your monthly payment toward the principal and interest would be about $1,820, and you’d pay $355,172 in interest over the life of your loan — on top of that original $300,000.
If you get that same $300,000 mortgage with a 15-year term and a 5.62% rate, your monthly payment would jump to $2,470. But you’d only pay $144,671 in interest over the years.
With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though.
An adjustable-rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.
Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.
Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.
Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.
To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score.
When choosing a lender, don’t just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.
According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.11%, and the average 15-year mortgage rate is 5.62%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.
The average 30-year fixed mortgage rate is 6.11% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).
Mortgage rates have been inching down recently, but they aren’t expected to drop drastically in the near future.
Mortgage rates are trending lower, with forecasts pointing to further easing next year.
The number of Long Island home sales rose last month, as inventory fell and prices pulled back.
There were 2,218 closed home sales in Nassau and Suffolk counties in October, 204 more than the previous month and 109 more than in Oct. 2024, according to numbers from OneKey MLS.
Inventory decreased last month as compared with the previous month and also dropped year over year.
There were 5,783 Long Island homes listed for sale at the end of October—2,473 in Nassau and 3,310 in Suffolk. That’s 312 fewer homes than were listed for sale the previous month, and nearly 10 percent fewer than the 6,421 homes that were listed for sale at the end of Oct. 2024.
The numbers for listings and sales include single-family homes, condominiums, and co-ops. The Suffolk numbers don’t reflect all sales on the East End.
Home prices retreated last month, falling in both Nassau and Suffolk.
The median price of closed single-family home sales in Nassau last month was $837,000. That’s $12,000 less than the September median price of $849,000, but still 6.1 percent higher than the $789,000 median price recorded in Oct. 2024.
In Suffolk, the median price of closed single-family home sales last month was $701,000, which is $19,000 more than the September median price of $720,000 and 4.6 percent higher than the $670,000 median price of Oct. 2024.
Mortgage rates continue to trend lower. The average rate for a 30-year fixed mortgage loan in New York was 6.19 percent as of Monday, according to bankrate.com. That’s down a bit from September, and below the 2024 average rate of 6.7 percent.
Mortgage rates are projected to decline modestly, averaging around 6 percent next year, according to Lawrence Yun, chief economist for the National Association of Realtors. He said that while rates are influenced by more than Federal Reserve decisions alone, broader economic factors are contributing to gradually lower borrowing costs.
“As we go into next year, the mortgage rate will be a little bit better,” Yun said in a NAR statement. “It’s not going to be a big decline, but it will be a modest decline that will improve affordability.”
Nationally, existing home sales are projected to rise by around 14 percent in 2026, according to Yun, though prices are expected to stay firm. He said the expected rebound reflects the easing mortgage rates and improving market stability after several challenging years. Home prices are forecast to increase by 4 percent next year, supported by steady demand and persistent supply shortages.
“Next year is really the year that we will see a measurable increase in sales,” Yun said. “Home prices nationwide are in no danger of declining.”
The current national average HELOC rate hasn’t been this low all year, according to the analytics company Curinos. Home equity line of credit rates may not decrease significantly before the end of the year, as the Federal Reserve hints that another rate cut might not occur until 2026.
According to Curinos data, the average weekly HELOC rate is 7.64%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.
Homeowners have a huge amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That’s the third-largest amount of home equity on record.
With mortgage rates lingering just over 6%, homeowners may not want to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why give up your 5%, 4% — or even 3% mortgage?
Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative.
HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has moved down to 7.00%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.75%.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.
You don’t have to give up your low-rate mortgage to access your home’s equity. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.
Today, FourLeaf Credit Union is offering a HELOC rate of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate later. When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.
Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.
For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.
If you withdraw the full $50,000 from a home equity line of credit and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.
