Mortgage Rates Hit 6.76%, Raising Long Island Payments by $255

The average 30-year fixed mortgage rate reached 6.76% for the week ending Thursday. This marks the highest level since June 2025. The rate increased from 6.71% the previous week. A year ago, the average stood at 6.35%.

Rates have climbed more than 0.75 percentage points since late February. The rise follows the start of the war with Iran. Conflict in the region has elevated oil prices and inflation expectations. These factors push Treasury yields to their highest points since 2023.

Payment Impact on Borrowers

A $500,000 mortgage now costs $3,246 per month in principal and interest. This figure excludes taxes and insurance. In late February, the same loan cost $2,991 per month. The difference represents an 8.5% increase in monthly obligations.

Anthony Smith, a senior economist at Realtor.com, noted that inflation expectations remain elevated. He predicted that Friday’s inflation data and the Federal Reserve’s upcoming decision will influence future rate direction. Higher rates directly increase the cost of borrowing for homebuyers.

Local Market Resilience

Long Island lenders report that demand remains steady despite higher costs. Mary O’Sullivan, chief operating officer at NMBNow, stated that homebuyer inquiries have not slowed. She attributed this to a persistent shortage of available homes in the region.

Zahra Jafri, president of Lynx Mortgage Bank, said many buyers are indifferent to rates between 6.5% and 7%. She noted that too many buyers are chasing too few houses. This dynamic prevents the local market from softening, even as national trends decline.

Record Prices Persist

The median price of a single-family home in Suffolk County hit an all-time high of $750,000 in July. Nassau County’s median price reached $880,000, just under the record level. OneKey MLS data shows about 5% more deals closed in July compared to the same month in 2025.

This local trend bucked the national pattern of declining transactions. Existing-home sales nationwide fell 1.2% year over year to their slowest pace since June 2025. GN auto markets/bonds: interest rates data indicates that local housing demand remains decoupled from broader national cooling trends.