ARE MORTGAGE RATES UP? | MJF Weekly Newsletter

ARE MORTGAGE RATES UP?

Yes—but just a smidge! As we sit in the midst of a busy (and healthy) spring real estate market, the impact of mortgage rates always remains a question—even here in New York, where many of our deals are all cash.

As we carry on into spring 2025, the real estate market will continue to evolve, shaped by various economic forces. Understanding how mortgage rates work—and what drives them—is crucial for making informed decisions.

The average rate on the benchmark 30-year fixed mortgage increased this week to 6.83%, up from last week’s reading of 6.62%. To put this in perspective, the average rate on a 30-year loan was 7.1% last year, with purchase application demand 13% lower than it is today—which we are clearly seeing in this spring season.

Mortgage rates are not set by the government (or pulled out of thin air(. They are influenced primarily by the bond market—especially the 10-year U.S. Treasury yield. When that yield rises (as it has), mortgage rates tend to follow suit. When it drops—you guessed it—rates come down.

While the Federal Reserve doesn’t set mortgage rates directly, it absolutely affects them. The Fed sets short-term interest rates for banks, which creates a domino effect through the financial system. So, when inflation is high or economic growth is strong, the Fed tightens the screws—and lenders respond in kind.

So why are rates higher right now? We’re still grappling with the lingering effects of supply chain disruptions (which drive up prices), as well as tariffs from the Trump administration on China, which are increasing import costs. Inflation is the ultimate villain here. When inflation rises, the value of money erodes. The Fed may raise rates to rein in inflation, and lenders demand higher returns to keep pace—which means higher mortgage rates.

Rate increases always seem to have a more pronounced impact across the U.S., but New York real estate continues (as it always does) to move and operate on its own plane. The rates, the economic uncertainty, and the seemingly constant swirl of negative news don’t appear to be slowing NYC down!

Our market has been very robust this quarter, and deals are still moving along. Sure, some buyers have taken a pause—but others are flocking to real estate as they see it as a safer bet. And don’t forget one of my favorite adages? You can’t live in your stock portfolio—but you can certainly live a fabulous life in that new dream home!

As always, I’m available to answer any and all of your questions about the real estate market.

Happy Easter to those celebrating—and enjoy the super warm weather coming tomorrow!

Best, Michael

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Local News

Easter Parade and Bonnet Festival in NYC 2025

Done your most elaborate chapeaux for the Easter Parade and Bonnet Festival in NYC.

Easter in New York means springtime weather, pastel colors, egg hunts, and the start of that lovely time of year when you can enjoy all the amazing things to do outside in NYC. Easter festivities are a highlight of all the things to do in spring, and the Easter Bonnet Parade & Festival is one of the highlights of Easter in NYC.

This parade is all about the hats—lavishly decorated, from the exquisite to the outlandish. Anyone is welcome to join, just show up near St. Patrick’s Cathedral at 10am on Easter Sunday to watch or saunter with the group up Fifth Avenue. The tradition dates back to the 1870s, so you might even see some participants in period costumes. But the highlight is the elaborate bonnets, some of which are truly over-the-top.

If you want to participate, put on your creative thinking cap and get started on your work of chapeaux art ASAP. Otherwise, the Easter Parade & Bonnet Festival makes for a fun start to Easter, after which you can head to one of the best brunches in the city for some springtime sustenance and take part in other Easter events in the city.

More Info: CLICK HERE

10 great restaurants to visit in the West Village,

no matter your budget

It may not surprise you that Greenwich Village was once an actual village. In the 18th and early 19th century it was a countryside farming community, as well as a refuge for wealthy city folks fleeing epidemics of diseases like smallpox and cholera.

In subsequent eras it became an early Black settlement, shipping port with warehouses and docks, and a location for prisons and rural churches. As the 20th century dawned, it turned into a mecca for poets, painters and bohemians, culminating in the Village of Emma Goldman, James Baldwin, Dylan Thomas and Bob Dylan.

The area west of Seventh Avenue subsequently became known as the West Village. With its meandering lanes, 19th-century townhouses, and quaint shops and restaurants, it remains a favorite destination for tourists and New Yorkers alike, a place known for fine food and bar hopping. Here are 10 great restaurants in the neighborhood, for a range of budgets.

Discover 10 must-visit restaurants in the West Village—no matter your budget. Click the link below to explore the list!

More Info: CLICK HERE

You Can Get Married

At An NYC Vending Machine—Complete

With Rings, Vows & A Receipt

Nothing says "I love you" like plastic rings, a robot officiate and a slip of your marriage receipt! So why not tie the know at this novelty AutoWed machine?

Always dreamed of getting married but maybe still terrified of the life-long commitment? Although most people probably don’t grow up fantasizing about their wedding venue at the Museum of Sex, or their wedding officiate being a machine, NYC’s AutoWed, a bubble gum pink retro vending machine, is letting loving couples exchange their vows for quick hitch.

Described by the ConceptShed, the makers of the AutoWed machine, as “a parking meter turned good,” it offers everything you could need to tie the knot!

Users will be asked to type in their names on the steel keyboard as audio prompts will guide you to solemnly swear your “I dos.” Once you make it official, the machine will play a specially composed wedding march. No need to put your rent money towards an expensive diamond—the machine vends two rings and even prints your marriage receipt!

More Info: CLICK HERE

136 East 64th Street, Apt. 11E

3 Beds | 3 Baths | Total Rooms: 7 | Co-op

Upper East Side | Maintenance: $6,016/mo

Offered at: $3,150,000

Welcome to Apartment 11E at 136 East 64th Street—a high-floor, sun-flooded classic seven distinguished by gracious proportions, refined finishes, and timeless elegance. Located in a coveted white-glove cooperative on one of Lenox Hill’s most charming tree-lined blocks, this residence offers a rare combination of prewar scale and sophisticated design.

From the semi-private landing, enter into a gracious gallery that sets the tone for this serene and welcoming home. To the right, the bright and airy south-facing living room features striking birds-eye maple herringbone floors and a wood-burning fireplace flanked by custom built-ins—perfect for both generous storage and beautifully curated displays.

To the left of the gallery, the expansive formal dining room also boasts birds-eye maple herringbone floors and is bathed in eastern light. With the ability to comfortably seat 20 or more guests, it provides an ideal setting for elegant entertaining or intimate gatherings.

Continuing past the gallery, you’ll find a cheerful breakfast room and a thoughtfully appointed chef’s kitchen with abundant custom cabinetry and stainless-steel appliances. A flexible staff room with en-suite bath—ideal as a fourth bedroom or office—sits adjacent to a laundry closet with full-size washer and dryer.

A true hallmark of this home is its intelligently designed layout, which offers a clear separation between entertaining and private quarters. The bedroom wing features three generously proportioned bedrooms and two full baths. The primary suite enjoys sunny southern exposures and an en-suite, windowed bath. A second corner bedroom suite features both eastern and southern exposures. The third, east-facing bedroom offers excellent scale and closet space.

Additional features include 9-foot plus beamed ceilings, through-the-wall air conditioning, and abundant closet and storage throughout.

Built in 1928 by architect George F. Pelham, 136 East 64th Street is a full-service cooperative offering impeccable white-glove service with full-time doormen, a resident manager, and central laundry. Each apartment includes dedicated storage. The building is pet-friendly and welcomes pied-à-terre ownership.

See listing website: CLICK HERE

More Listings

Michael J. Franco

Lic. Assoc. R.E. Broker

M: 917.817.4122

mfranco@compass.com

Office: 646-982-0353

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. All Coming Soon listings in NYC are simultaneously syndicated to the REBNY RLS. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.