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Mortgage Rates Dip as The Spring Market Approaches

Mortgage Rates Dip as The Spring Market Approaches

Plus, Home Buyer Questions and Answers, and Are Investors Really Buying All the Homes?

Ralph Ragetté Jr
March 07, 2025 • Reading Time: 10 minutes

> Over 64,000 homeowners put their homes on the market last week^* , and the number of Americans planning to buy a home this year is at its highest level since 2020.^**

As helpful as it is to know that the market isn’t frozen and people are buying and selling real estate every day, that data doesn’t really answer this question:

Is 2025 the best time to sell MY house?
Is 2025 the best time for ME to buy?

> The truth is — you’ll never be able to time the market.‍‍ Don’t rely on the news, or Reddit threads, or community Facebook pages to help you make real estate decisions. If you need any guidance on your situation, I’m here to help.

_{Sources: *}_{Altos Research}_._**_Nerdwallet_.

Today’s Topics:

Mortgage rates hit a 2025 low earlier today
I tackle your buyer questions on the market
Are institutional investors actually buying up all the real estate

Mortgage Rates Dip as The Spring Market Approaches

Harbor Island Park, Mamaroneck

The U.S. housing market is experiencing a slight easing in mortgage rates, offering a glimmer of hope for prospective buyers as the spring selling season approaches. Today, the average 30-year fixed mortgage rate hit a new low for 2025, dropping to 6.70%. Additionally,

Refinance activity hit its fastest pace since October 2024.
Mortgage applications increased 9% week-over-week, up 2% from last year.
Property tours are up 25% from the start of the year, according to Redfin.

Ralph’s Take

Mortgage rates have shown stability, a promising sign for both buyers and sellers as we head into the spring market. After seven consecutive weeks of decline, the 30-year fixed mortgage rate is down from 7.07% at the start of the year. With lower rates and increased mortgage applications, the spring homebuying season could be strong. Looking Ahead: Fannie Mae forecasts that 30-year fixed rates will average 6.8% this year, gradually dipping to 6.6% by the end of 2025.

Westchester Weekly Market Tracker 📈

‘Coming Soon’ Listings: 21 ↓-8
New Listings: 243 ↑+21
Price Reductions: 70 ↑+19
Pending Sales: 151 ↑+18
Closed Sales: 99 ↑+3

💰 Highest Sale: 1 Quaker Center, Scarsdale: $5,635,000 (94% of ask)

_{Property Type: Single-Family. OneKey MLS, Inc. 2/28/25 - 3/7/25.}

Reader Q&A: Buyers 🙋‍♂️

What should I know about buying a co-op in Westchester vs. NYC? Is buying a co-op worth the hassle?

Westchester’s co-op approval process is similar to New York City’s, but a 2021 Fair Housing amendment requires Westchester co-op boards to disclose financial requirements and provide reasons for rejection. This gives buyers clarity on qualifications. While the process still includes financial scrutiny and board rules, co-ops remain an excellent, affordable path to homeownership and equity building!

How important are school districts for resale value?

School district rankings have a significant impact on home values, even for buyers without children. Homes in top-ranked districts tend to sell faster and appreciate slightly higher over time. For example, since 2020, the median sales price of a single-family home in the Scarsdale School District (ranked #1 by Niche.com) has risen 38.3%, compared to a 28.4% increase in the Yonkers School District (ranked #35). Strong school districts attract more buyers, boosting demand and ensuring better long-term resale value.

We lost out on three homes last year. How can we better compete in a multiple-offer situations?

"Highest and Best" deadlines remain common in today’s low-inventory market, where strategic offers can make all the difference. The highest bid isn’t always the strongest — terms matter. Winning offers often include escalation clauses, minimized or waived contingencies when possible, and a closing date aligned with the seller’s preference (I always call the listing agent to inquire). Adding financial assurances and building rapport with the seller’s agent can also give my buyers a critical edge.

Thank you, Chris, Marcus, and Sophia, for your fantastic questions! 🎉 I hope you all enjoy the digital Amazon gift cards coming your way! Next week, I’ll be answering seller-related questions, and any new seller questions submitted between now and then are still eligible for a $25 Amazon Gift Card! 🎁 For those who submitted other buyer-related questions last week, check your inbox — I’ve already emailed my answers to you! 🙌

Are Investors Really Buying All the Homes?

If you’ve been worried about competing with Wall Street for a home, here’s some good news: Institutional investors (those owning 1,000+ homes) make up a small amount of the market, and they’re pulling back, according to multiple outlets. At the peak of the pandemic housing boom in Q3 2021, institutional investors made up 2.2% of home purchases. By Q2 2024, that number had dropped to just 0.3%.

Institutional investors currently own 0.4% of the market.
Small investors account for around 18% of the market.
Total investor purchases, meaning all non-primary home buyers, hit 14.8% of home sales in Q1 2024, the highest share recorded since data tracking began in 2001.

Ralph’s Take

While investors have played a notable role in the market, individual buyers continue to drive the vast majority of transactions. Additionally, there is a shift in strategy for institutional investors — rather than purchasing existing single-family homes, many are now focusing on developing build-to-rent communities.

If you have a $725,000 house that's on the market for 90 days, I estimate you would lose approximately $19,058 in holding costs.  Every day that your home is sitting on the market with no viable offers, you’re losing money.

To the average agent, it might sound like overkill that I spend so much time preparing our clients' homes for launch. But in my opinion, there's no other option.

It’s never too early to start planning. Start the conversation today

Mortgage Watch 📉

Today’s average 30-year fixed mortgage rate is 6.70% (⬇️ .04%, from this time last week). This is the lowest rate we've seen so far this year.

> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.