Mortgage rates have dipped below 6% for the first time in more than three years. This could bring more buyers back into the Long Island housing market this spring.
According to Freddie Mac, the average 30-year fixed-rate mortgage fell to 5.98% on Feb. 26. That is down from 6.01% the week before and 6.76% a year ago. The last time rates were under 6% was in September 2022.
For many buyers, that number carries both financial and emotional weight.
“For buyers who’ve been waiting on the sidelines, this feels like a green light,” said Joe Moshé, broker and owner of Charles Ruthenberg Realty Inc in Plainview. “But lower rates don’t automatically create more homes for sale. When demand rises faster than supply, competition follows.”
While borrowing costs are easing, the number of homes for sale across Long Island remains low. OneKey MLS’s latest data shows a decrease in available housing in Nassau and Suffolk counties.
In Nassau County, the price for a single-family home rose 3.1% in January compared to a year earlier, climbing from $810,000 to $835,000. At the same time, the number of available homes dropped from 1,799 last January to 1,497 this year.
Suffolk County saw a similar pattern. The sales price increased 4.5% year over year, rising from $670,000 to $700,000. Inventory fell from 2,561 homes to 2,124.
Those numbers point to a harder market, even before the busy spring season begins.
“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.”
Long Island has faced limited housing for years. That has kept new listings low, especially in popular communities with easy access to New York City.
With rates dipping below 6%, more buyers may decide the time is right to act. But that could mean more bidding wars, especially in areas close to train lines and major highways.
“When you have fewer homes and more buyers, prices can move quickly,” Moshé said. “Buyers who are financially prepared may want to act before competition escalates.”
He advises buyers to look beyond headlines and focus on what is happening in their specific neighborhood.
“Interest rates matter, but so do weekly inventory levels, recent comparable sales, and seasonal momentum,” he said. “In this market, having real-time local data can make the difference between winning and losing a deal.”
For sellers, the current environment could offer an opportunity. With limited homes on the market, a well-priced home may attract strong interest if rates remain below 6% through spring.
The drop below 6% may mark a turning point, but not necessarily toward an easier market. Instead, it could signal a faster-moving one, where buyers need to be ready, and sellers may see renewed demand.
As the spring market approaches, all eyes will remain on mortgage rates — and on whether more homeowners decide to list their properties. Until then, competition may remain the defining feature of the Long Island housing market.
