Happy Friday! 👋

By now you’ve likely heard the Federal Reserve cut short-term rates by 25 basis points.

The impact on the bond and mortgage markets is key.

Every 0.25% change in rates equals about $17 per month for every $100K financed. Scale it up or down, and the math works at any price point.

If you’re planning to buy before year’s end, here are 3 things to watch:

Rate Spread: Keep an eye on the gap between mortgage rates and the 10-year Treasury. If the spread narrows week over week, ask your lender about the timing of a rate lock.
Inventory: Active listings are slightly higher year-over-year. Expanding your search by one neighborhood or price bracket can uncover deals others overlook.
Price Reductions: Cuts are trending up week-over-week. Pay special attention to homes sitting on the market for 30+ days.

Today’s Topics:

The Mortgage Market Reacts to The Fed Cut
Would You Let a Potential Buyer Sleepover?
Deal of the week: “The Anthony Miller House”

Fed Rates 🔻 Mortgage Rates 🔺 🤔

The day after the Fed trimmed short-term rates by 25 basis points, mortgage rates did the opposite of what many expected. The 30-year fixed rate, which had been on a steady decline since hitting 7.08% in May and dropping to 6.13% on Tuesday, suddenly reversed course climbing back up to 6.37% yesterday, reported by Mortgage News Daily. Even with the bump, rates are still hovering near their lowest levels of the year. According to the Mortgage Bankers Association:

Mortgage rates have held steady or fallen for 10 weeks.
Mortgage applications increased 6 of the last 7 weeks.
Mortgage applications jumped 29.7% last week compared to the week prior.
Refinance activity is up 70% from a year ago.

Ralph’s Take

The Fed doesn’t set long-term rates like the 30-year mortgage, but its policies do influence them. Much of the recent positivity was already priced into the bond market, which mortgage rates follow. We saw a similar pattern last year: the average 30-year fixed dipped to 6.11% before the Fed’s 50-basis-point cut, then climbed back to 7% by the end of October. Will that happen again? Hopefully not — Jerome Powell signaled more cuts are likely, though the market remains sensitive to inflation and jobless claims. Either way, improving affordability is driving an uptick in buyer demand, a positive sign for the fall market — one that could strengthen further if additional rate cuts are on the horizon.

Westchester Weekly Market Tracker 📈

‘Coming Soon’: 20 ↓-2
New Listings: 226 ↓-24
Price Reductions: 104 ↑+21
Pending Sales: 175 ↑+16
Closed Sales: 165 ↑+16

💰 Find your home’s value here: What’s my home worth?

_{Property Type: Residential. OneKey MLS, Inc. 9/12/25 - 9/19/25.}

🛏️ The Sleepover Strategy

When it comes to selling a home, first impressions matter, but what if buyers could sleep on it, literally? A growing trend in real estate, especially in luxury markets and planned communities, is allowing serious buyers to spend the night in a property before making an offer. The extended showing gives them a true sense of the home’s features, potential nighttime noise, and the vibe of the surrounding neighborhood. 33% of buyers who spend the night end up buying — that's three times the conversion rate of a traditional showing. Why it’s interesting:

Sleepover showings convert at 33%, compared to 11% for standard tours.
Sellers gain leverage: no buyer’s remorse, fewer surprises, stronger closings.
Buyers get clarity on noise, neighborhood, commute, and comfort.
Protect the deal with waivers, deposits, and clear offer deadlines.

Ralph’s Take

Okay - I understand why the $1 pricing strategy sparked so many responses in my last post, but this idea doesn’t feel quite as radical. Think of it this way: people spend an hour on TripAdvisor before booking a $300 hotel, yet only 37 minutes touring a home before buying it for $750k. Letting a serious buyer spend the night could be one of the smartest moves in real estate right now. Sure, it sounds a little weird — but so did Airbnb, Carvana, and online mattress shopping. My opinion: Anything that helps a buyer form an emotional connection to a home is effort well spent.