Mortgage Housing Update - May 11, 2026
- Alisha
- May 11
- 4 min read
Buyers Are Starting to Gain More Power in Today’s Market
The housing market continues to shift as mortgage rates move slightly lower and inventory improves across many areas — especially in the New York metro market. While affordability remains a challenge for some buyers, today’s market conditions are creating opportunities that many buyers haven’t seen in years.
If you’ve been waiting for the “right time” to buy, this market may deserve a closer look.
Mortgage Rates Edge Lower
Mortgage rates improved slightly again this week, giving buyers a little more breathing room heading into the busy spring market.
According to MortgageNewsDaily.com and Freddie Mac:
30-Year Fixed: approximately 6.42%
15-Year Fixed: approximately 5.99%
FHA Loans: approximately 5.93%
7/6 Adjustable-Rate Mortgage (ARM): approximately 6.27%
Freddie Mac also reported:
30-Year Fixed Average: 6.37%
15-Year Fixed Average: 5.72%
Although rates continue to fluctuate week-to-week, they remain lower than the levels seen this time last year. Even a small drop in interest rates can make a meaningful difference in monthly affordability and purchasing power.
Inflation & Economic Outlook
The Federal Reserve continues to monitor inflation closely as it works to balance economic growth and borrowing costs.
Current economic indicators show:
Inflation Rate: 3.3%
Unemployment Rate: 4.3%
Because inflation remains elevated, mortgage rates are likely to continue moving up and down based on new economic reports, labor market updates, and Federal Reserve decisions.
For buyers, this means market timing may remain unpredictable throughout 2026.
Housing Market Shift: Buyers Are Gaining Leverage
One of the biggest changes happening right now is the shift in housing inventory.
Recent New York metro area data shows:
Buyers: approximately 25,000
Sellers: approximately 28,000
Sellers currently outnumber buyers by roughly 12.5%
Buyer demand has softened year-over-year while inventory levels continue improving. As a result, buyers are starting to regain negotiating power in many markets.
This shift is creating opportunities such as:
More homes available for sale
Increased negotiating leverage
More price reductions
Less bidding-war pressure
Greater flexibility during the home-buying process
Why This Matters for Homebuyers
Today’s market is very different from the ultra-competitive environment buyers faced over the past several years.
Many buyers now have the ability to:
Negotiate closing costs
Request repairs or seller credits
Take more time making decisions
Explore multiple loan options
Refinance later if rates improve
While many people are still waiting for “perfect” interest rates, it’s important to remember that lower rates can also bring increased competition and rising home prices.
Sometimes the better strategy is purchasing the right home now and refinancing later if rates decline further.
Loan Program Options Available
At LJ Mortgage Team Inc., we work with a variety of loan programs to fit different financial situations and homeownership goals.
🟩 FHA Loans
As little as 3.5% down
Minimum 580 credit score
🟩 VA Loans
0% down payment for eligible veterans and military borrowers
🟩 Conventional Loans
Typically 5%+ down
Minimum 620 credit score
🟩 Investment Property Loans
Usually 20–25% down
🟩 Non-QM Loan Programs
Including:
DSCR Loans
Bank Statement Loans
1099 Programs
Typical requirements:
Around 20% down
700+ credit score
🟩 Commercial Financing
Commercial loan options are also available for qualified borrowers and investors.
Every buyer’s situation is different, which is why having the right strategy matters more than reacting to headlines.
Let’s Build a Custom Plan for You
Whether you're buying your first home, upgrading, investing, or refinancing, having the right mortgage strategy can make all the difference.
👉 Get Pre-Approved Today
👉 Explore Our Loan Programs
👉 Use Our Affordability Calculator
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Thinking About Buying a Home?
If you’d like to review your affordability, monthly payment options, or loan programs available today, contact the LJ Mortgage Team for a free personalized consultation.
Message “BUY” for:
Free affordability review
Personalized loan options
Down payment guidance
Credit improvement strategies
Investment property financing options
LJ Realty Team
Your Local Guide to Homeownership!
📍127-03 Rockaway Blvd South Ozone Park, NY 11420
☎️ (516) 218-1297
Buy - Sell - Rent
Equal Housing Opportunity
LJ Mortgage Team Inc. NMLS# 2120286
Purchase & Refinance
NYS Registered Mortgage Broker, NYS Dept. of Financial Services.
Broker arranges mortgage loans with third-party providers.
MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER.
We Do Not Make Any Mortgage Loan Commitments Or Fund Any Mortgage Loans.
NMLS ID #2120286
Frequently Asked Questions (FAQs)
Is now a good time to buy a home even with rates above 6%?
For many buyers, yes. While rates are higher than the historic lows seen a few years ago, today’s market offers advantages that buyers didn’t have during the peak competitive market — including more inventory, better negotiating power, and fewer bidding wars. Many buyers also plan to refinance later if rates improve.
How much do I need for a down payment?
It depends on the loan program:
FHA Loans: as low as 3.5% down
VA Loans: 0% down for eligible veterans
Conventional Loans: typically 5% or more
Investment Properties: usually 20–25% down
There are also down payment assistance programs available for some buyers.
What credit score do I need to qualify?
General guidelines include:
FHA Loans: typically 580+
Conventional Loans: usually 620+
Non-QM / Investor Programs: often 700+
Every lender and loan scenario is different, so even if your score is lower, there may still be options available.
What is a Non-QM loan?
Non-QM (Non-Qualified Mortgage) loans are designed for borrowers who may not qualify using traditional income documentation.
These programs can help:
Self-employed borrowers
Business owners
Real estate investors
1099 earners
Borrowers using bank statements instead of tax returns
Popular Non-QM options include DSCR loans and bank statement loans.
Should I wait for mortgage rates to drop?
Waiting can sometimes help — but it can also create more competition and higher home prices. The “perfect” market rarely exists. Many buyers choose to purchase now, build equity, and refinance later if rates improve.
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