Should I wait for mortgage rates to fall before buying a home?

There is no universal answer. Buyers should consider the purchase price, monthly payment, down payment, closing costs, available inventory and financing program together rather than relying solely on predictions about future mortgage rates.

How can I find out which mortgage program works for me?

A mortgage professional can review your income, credit, assets, liabilities, down payment, property type and financial goals to help identify mortgage programs for which you may qualify.

Mortgage Housing Update – August 24, 2026:

Q: What are mortgage rates right now?

As of the August 24, 2026 update, Freddie Mac's 30-year fixed mortgage average is 6.65% and its 15-year fixed average is 5.95%. Mortgage News Daily's 30-year indicator is approximately 6.77%, while FHA is approximately 6.33%. Individual borrower rates may vary.

Q: Is Nassau County currently competitive for buyers?

July estimates indicate approximately 12,000 buyers compared with 8,000 sellers in Nassau County, suggesting that buyer demand continues to outpace available sellers. Conditions can vary by neighborhood, price range and property type.

Q: What is the New York mansion tax?

New York's mansion tax applies to qualifying residential real estate purchases beginning at $1 million. Buyers near or above the threshold should account for the tax when estimating closing costs.

Q: Can I refinance later if mortgage rates decline?

Potentially. Homeowners may be able to refinance if future interest rates, available loan programs and their financial qualifications make refinancing beneficial. Refinancing is not guaranteed and may involve closing costs.

Alisha
23 hours ago
6 min read

The housing market continues to give buyers plenty to watch as we head into the final week of August.

Mortgage rates remain in the upper-6% range, while inflation, housing-market data, Treasury yields, and expectations surrounding the Federal Reserve continue to influence borrowing costs.

For buyers, homeowners considering refinancing, and self-employed borrowers, understanding the bigger picture can be more useful than focusing on mortgage rates alone.

Here is this week's Mortgage Housing Update from LJ Mortgage Team.

📉 Mortgage Rate Update

Current mortgage-rate indicators include:

Freddie Mac 30-Year Fixed: 6.65%
Freddie Mac 15-Year Fixed: 5.95%
Mortgage News Daily 30-Year: 6.77%
FHA: 6.33%

These figures are market averages or indicators—not guaranteed rates available to every borrower.

Your actual mortgage rate can vary based on factors such as your credit profile, down payment, loan amount, property type, occupancy, loan program, points, and overall financial qualifications.

That is why buyers should compare the complete financing picture rather than focusing exclusively on a headline interest rate.

💼 Self-Employed? Bank Statement Loans May Offer Another Option

Getting a mortgage can sometimes be more complicated for business owners and self-employed borrowers because traditional mortgage underwriting often relies heavily on tax-return income.

A Bank Statement Loan may provide an alternative for eligible borrowers.

Depending on the program, a lender may review approximately 12 or 24 months of personal or business bank statements to determine qualifying income instead of relying solely on traditional tax-return income calculations.

Bank Statement Loans may be worth exploring for:

Business owners
Entrepreneurs
Independent contractors
Freelancers
Other eligible self-employed borrowers

These are generally non-QM programs, and requirements can vary significantly between lenders. Credit, reserves, down payment, deposit history, business expenses, and other factors may affect eligibility.

A mortgage review can help determine whether traditional financing or an alternative-income program makes more sense for your situation.

🏘️ Nassau County Housing Market: Buyer Demand Remains Strong

Housing supply remains an important part of the Long Island real estate market.

July estimates indicate approximately 12,000 buyers compared with 8,000 sellers in Nassau County.

That imbalance suggests buyer demand continues to exceed the number of available sellers.

For buyers, limited inventory can mean greater competition for desirable properties. Being financially prepared before making an offer can therefore be particularly important.

Consider having your mortgage documentation ready, understanding your comfortable monthly-payment range, and obtaining an appropriate pre-approval before seriously shopping for a property.

For homeowners considering selling, strong buyer demand may create opportunities—but pricing, property condition, location, and local comparable sales still matter.

💰 New York's $1 Million Mansion Tax Threshold

Another issue affecting New York homebuyers is the state's mansion tax.

New York's $1 million mansion-tax threshold dates back to 1989. Despite decades of increases in home prices and the overall cost of living, that original threshold has remained unchanged.

Adjusted for inflation, $1 million in 1989 would represent roughly $2.7 million today.

This is particularly relevant in markets such as New York City and Long Island, where many properties can reach or exceed the $1 million mark.

Buyers approaching this price level should discuss anticipated closing costs with their real estate attorney and mortgage professional before making an offer.

Remember: the purchase price is only one component of the cash you may need to complete a transaction.

📊 Inflation and the Economy

Two important economic indicators currently on the radar are:

Inflation: 3.4%

Unemployment: 4.1%

Why should homebuyers care about economic reports?

Mortgage rates are influenced by the broader bond market, including movements in Treasury yields. Inflation expectations, employment conditions, economic growth, and Federal Reserve policy expectations can all contribute to changes in bond yields and mortgage pricing.

This means mortgage rates can move even when the Federal Reserve has not directly changed its benchmark interest rate.

📅 What to Watch This Week

Several important economic and housing reports are scheduled this week, including:

Home-price data
New-home sales
PCE inflation
GDP
Initial jobless claims
Consumer sentiment
Inflation expectations

Among these, inflation data can receive significant attention from financial markets because persistent inflation may affect expectations for future Federal Reserve policy.

Unexpectedly strong or weak economic reports can also cause Treasury yields—and potentially mortgage rates—to move quickly.

🏡 Should Buyers Wait for Mortgage Rates to Drop?

Trying to purchase a home at the exact lowest mortgage rate is extremely difficult because rates can change quickly and future market movements cannot be predicted with certainty.

Instead of making a home-buying decision based on one number, consider the complete financial picture:

Purchase Price + Down Payment + Mortgage Rate + Monthly Payment + Property Taxes + Insurance + Closing Costs + Loan Program

A slightly lower rate does not automatically make a property affordable, just as a higher rate does not automatically mean buying is the wrong decision.

The goal should be to find a property and financing structure that fit your current financial situation and long-term plans.

💡 A Better Strategy for Today's Homebuyer

Before entering the market, consider asking:

What purchase price can I comfortably afford?
What will my complete monthly housing payment be?
How much cash will I need at closing?
Which mortgage programs am I eligible for?
Would paying points make financial sense?
Are seller concessions available?
How would my payment change if rates move?
If I am self-employed, how will my income be calculated?

Understanding these numbers before making an offer can help you shop with greater confidence.

Frequently Asked Questions

1. What are mortgage rates right now?

As of this August 24, 2026 update, Freddie Mac's 30-year fixed average is 6.65%, while its 15-year fixed average is 5.95%. Mortgage News Daily's 30-year indicator is approximately 6.77%, with FHA around 6.33%.

Individual borrowers may receive different rates depending on their qualifications, loan program, property, points, and market conditions.

2. Will mortgage rates go down in 2026?

Mortgage rates can move in either direction. Inflation, employment, economic growth, Treasury yields, Federal Reserve expectations, and financial-market conditions can all influence mortgage pricing.

Rather than relying on a prediction, buyers should evaluate whether a purchase works with today's payment and their overall financial situation.

3. What is a Bank Statement Loan?

A Bank Statement Loan is an alternative mortgage program that may allow eligible self-employed borrowers to qualify using bank-statement deposits rather than traditional tax-return income calculations.

Some programs review 12 or 24 months of statements, although requirements vary by lender.

4. Do Bank Statement Loans require tax returns?

Certain Bank Statement Loan programs may not require tax returns for qualifying income. However, documentation and underwriting requirements vary, so borrowers should review the specific program with a mortgage professional.

5. Is Nassau County currently competitive for buyers?

July estimates of approximately 12,000 buyers versus 8,000 sellers indicate that buyer demand continues to outpace available sellers. Competition can vary significantly by neighborhood, property type, price range, and property condition.

6. What is the New York mansion tax?

New York imposes a mansion tax on residential real estate purchases beginning at $1 million. Buyers considering properties around or above the threshold should factor the tax into their estimated closing costs and consult the appropriate professionals regarding their specific transaction.

7. Does the Federal Reserve directly set mortgage rates?

No. The Federal Reserve does not directly set consumer mortgage rates. However, Fed policy, inflation expectations, and economic conditions can influence the bond market and Treasury yields, which can affect mortgage pricing.

8. Should I wait for rates to fall before buying a home?

There is no universal answer. Waiting could potentially produce a lower rate, but home prices, inventory, competition, and your personal circumstances can also change.

A better approach is to determine whether the home's purchase price, monthly payment, cash needed to close, and financing terms work for you today.

9. Can I refinance later if mortgage rates decline?

Potentially. Homeowners may be able to refinance if future rates and their financial circumstances make doing so beneficial. Refinancing is subject to qualification, closing costs, available loan programs, and market conditions, so a future refinance should never be assumed or guaranteed when deciding whether to purchase today.

Buying, Refinancing, or Self-Employed? Let's Review Your Options

The mortgage and housing markets are constantly changing, but your home-buying strategy should be based on more than a single week's interest rate.

Whether you're a first-time homebuyer, repeat buyer, homeowner considering refinancing, real estate investor, or self-employed borrower, LJ Mortgage Team can help you review available financing options and understand the numbers before you make your next move.

Let’s Build a Custom Plan for You

Whether you’re buying, refinancing, or investing, understanding your financing options is the first step toward making a smart real estate decision.

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LJ Realty Team

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📍127-03 Rockaway Blvd South Ozone Park, NY 11420

☎️ (516) 218-1297

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LJ Mortgage Team Inc. NMLS# 2120286

Purchase & Refinance

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Broker arranges mortgage loans with third-party providers.

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We Do Not Make Any Mortgage Loan Commitments Or Fund Any Mortgage Loans.

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Terms and Conditions apply. All programs, rates, and guidelines are subject to change and borrower qualification. This is not a commitment to lend.