But what do these numbers really mean for you as a buyer? And how much do they actually affect your ability to buy a home in neighborhoods like Tottenville, Great Kills, or Huguenot?
Let’s break it all down in a way that’s easy to understand.
What Is a Mortgage Rate?
A mortgage rate is the interest you pay your lender in exchange for borrowing money to buy a home. Most buyers choose a 30-year fixed mortgage, which means you’ll make the same monthly payment (including interest) over 30 years.
As of early May 2025, the average 30-year fixed mortgage rate is around 6.85%, according to Bankrate and Freddie Mac. That’s slightly down from last week—but still much higher than the 3% rates many buyers saw a few years ago.
Why Do Mortgage Rates Change?
Mortgage rates go up and down based on a few key things:
- Inflation: When prices rise, so do interest rates.
- Federal Reserve actions: When the Fed raises or lowers its base rate, mortgage lenders often follow.
- Economic conditions: Job numbers, consumer spending, and global events can all impact the housing market.
- Bond market performance: Mortgage rates are tied to the 10-year Treasury yield. When that goes up, so do rates.
Basically, rates are always changing—sometimes weekly—based on what’s going on in the economy.
What Happens When Rates Go Up?
Here’s where it gets personal. Even a small increase in mortgage rates can raise your monthly payment by hundreds of dollars—and reduce how much house you can afford.
Let’s use an example. Say you’re buying a $650,000 home in Tottenville, with 20% down.
- At 6.0% interest, your monthly mortgage payment would be around $3,118.
- At 7.0%, that same home would cost you about $3,461 per month.
That’s a difference of $343 every month, or over $123,000 across 30 years.
Now imagine trying to buy in Great Kills, where many homes are priced between $550,000 and $700,000. A higher rate could push your dream home just out of reach—or force you to consider a smaller property.
How Rates Affect What You Can Afford
When rates go up, your buying power goes down. Here’s another quick example:
- With a $3,000 monthly budget, at 6% interest, you could afford a home around $610,000.
- But at 7%, that drops to around $545,000.
That difference matters in places like Huguenot, where homes are steadily increasing in value. If you’re on a tight budget, interest rates can mean the difference between getting your top choice—or missing out entirely.
What Are Mortgage Rates Expected to Do in 2025?
According to housing experts like Fannie Mae and Goldman Sachs, rates are expected to slowly decline later in 2025—but probably not by much. Most forecasts suggest rates will stay between 6% and 7% for the rest of the year.
So, if you’re waiting for rates to drop to 3% again like they did in 2020… you might be waiting a long time.
The good news? Even if you buy now at a higher rate, you can always refinance later if rates fall.
Should You Buy a Home Now or Wait?
This is the big question for many buyers—and the answer depends on your personal goals and budget. But here are a few things to consider:
✅ Home Prices Aren’t Dropping Much
In Staten Island, neighborhoods like Tottenville and Huguenot continue to see steady home prices, even with higher rates. That’s because demand is still strong, and inventory is limited.
Waiting for prices to crash may not be the best strategy.
✅ You Can Refinance Later
If rates fall next year, you can refinance your mortgage and lower your monthly payment. But you can’t go back in time to buy the home you missed out on.
✅ Renting Isn’t Getting Cheaper
Rents are also going up across Staten Island. If you’re already paying $2,500 or more in rent, it may make more sense to build equity in a home.
Tips for Buying a Home with Today’s Rates
If you’re ready to move forward, here are a few smart steps to take:
1. Get Pre-Approved for a Mortgage
This shows sellers you’re serious—and helps you understand exactly how much you can afford. A good lender will break down your monthly payment at different interest rates, so you’re prepared.
2. Use a Local Staten Island Real Estate Expert
Working with a local agent, like one from Robert DeFalco Realty, gives you an advantage. We know the market trends in Great Kills, Tottenville, Huguenot, and beyond—and we’ll help you find the best deal for your budget.
3. Consider a Rate Buy-Down
Some sellers are offering rate buydowns, which help reduce your interest rate for the first few years of your loan. Ask your agent about this—especially if you’re buying new construction or in a competitive area.
Bottom Line
Mortgage rates are one of the most important factors in your homebuying journey—but they’re not the only one.
If you’re serious about buying a home on Staten Island in 2025, don’t let interest rates scare you away. Talk to a lender, work with a knowledgeable agent, and create a game plan based on your budget.
Homes in Tottenville, Great Kills, and Huguenot continue to offer great value—and with the right strategy, you can make a smart move, even in today’s market.
If you’re thinking about buying a home on Staten Island, you’ve probably heard a lot about mortgage interest rates lately. They’ve been going up, going down, and confusing just about everyone in between.
But what do these numbers really mean for you as a buyer? And how much do they actually affect your ability to buy a home in neighborhoods like Tottenville, Great Kills, or Huguenot?
Let’s break it all down in a way that’s easy to understand.
What Is a Mortgage Rate?
A mortgage rate is the interest you pay your lender in exchange for borrowing money to buy a home. Most buyers choose a 30-year fixed mortgage, which means you’ll make the same monthly payment (including interest) over 30 years.
As of early May 2025, the average 30-year fixed mortgage rate is around 6.85%, according to Bankrate and Freddie Mac. That’s slightly down from last week—but still much higher than the 3% rates many buyers saw a few years ago.
Why Do Mortgage Rates Change?
Mortgage rates go up and down based on a few key things:
- Inflation: When prices rise, so do interest rates.
- Federal Reserve actions: When the Fed raises or lowers its base rate, mortgage lenders often follow.
- Economic conditions: Job numbers, consumer spending, and global events can all impact the housing market.
- Bond market performance: Mortgage rates are tied to the 10-year Treasury yield. When that goes up, so do rates.
Basically, rates are always changing—sometimes weekly—based on what’s going on in the economy.
What Happens When Rates Go Up?
Here’s where it gets personal. Even a small increase in mortgage rates can raise your monthly payment by hundreds of dollars—and reduce how much house you can afford.
Let’s use an example. Say you’re buying a $650,000 home in Tottenville, with 20% down.
- At 6.0% interest, your monthly mortgage payment would be around $3,118.
- At 7.0%, that same home would cost you about $3,461 per month.
That’s a difference of $343 every month, or over $123,000 across 30 years.
Now imagine trying to buy in Great Kills, where many homes are priced between $550,000 and $700,000. A higher rate could push your dream home just out of reach—or force you to consider a smaller property.
How Rates Affect What You Can Afford
When rates go up, your buying power goes down. Here’s another quick example:
- With a $3,000 monthly budget, at 6% interest, you could afford a home around $610,000.
- But at 7%, that drops to around $545,000.
That difference matters in places like Huguenot, where homes are steadily increasing in value. If you’re on a tight budget, interest rates can mean the difference between getting your top choice—or missing out entirely.
What Are Mortgage Rates Expected to Do in 2025?
According to housing experts like Fannie Mae and Goldman Sachs, rates are expected to slowly decline later in 2025—but probably not by much. Most forecasts suggest rates will stay between 6% and 7% for the rest of the year.
So, if you’re waiting for rates to drop to 3% again like they did in 2020… you might be waiting a long time.
The good news? Even if you buy now at a higher rate, you can always refinance later if rates fall.
Should You Buy a Home Now or Wait?
This is the big question for many buyers—and the answer depends on your personal goals and budget. But here are a few things to consider:
✅ Home Prices Aren’t Dropping Much
In Staten Island, neighborhoods like Tottenville and Huguenot continue to see steady home prices, even with higher rates. That’s because demand is still strong, and inventory is limited.
Waiting for prices to crash may not be the best strategy.
✅ You Can Refinance Later
If rates fall next year, you can refinance your mortgage and lower your monthly payment. But you can’t go back in time to buy the home you missed out on.
✅ Renting Isn’t Getting Cheaper
Rents are also going up across Staten Island. If you’re already paying $2,500 or more in rent, it may make more sense to build equity in a home.
Tips for Buying a Home with Today’s Rates
If you’re ready to move forward, here are a few smart steps to take:
1. Get Pre-Approved for a Mortgage
This shows sellers you’re serious—and helps you understand exactly how much you can afford. A good lender will break down your monthly payment at different interest rates, so you’re prepared.
2. Use a Local Staten Island Real Estate Expert
Working with a local agent, like one from Robert DeFalco Realty, gives you an advantage. We know the market trends in Great Kills, Tottenville, Huguenot, and beyond—and we’ll help you find the best deal for your budget.
3. Consider a Rate Buy-Down
Some sellers are offering rate buydowns, which help reduce your interest rate for the first few years of your loan. Ask your agent about this—especially if you’re buying new construction or in a competitive area.
Bottom Line
Mortgage rates are one of the most important factors in your homebuying journey—but they’re not the only one.
If you’re serious about buying a home on Staten Island in 2025, don’t let interest rates scare you away. Talk to a lender, work with a knowledgeable agent, and create a game plan based on your budget.
Homes in Tottenville, Great Kills, and Huguenot continue to offer great value—and with the right strategy, you can make a smart move, even in today’s market.