Wallet Watch newsletter: Mortgage rates hit 9-month high
The average 30-year fixed rate has climbed since the start of the Iran war in February but remains lower than it was a year ago at this time. Rates exclude fees and points offered by lenders. Source: Freddie Mac Primary Mortgage Market Survey.
Mortgage rates hit a nine-month high last week, but that won't put off Long Island buyers, experts say.
Driven by soaring oil prices and inflationary pressures in the wake of the Iran War, the average 30-year fixed mortgage rate climbed to 6.53%, reports Newsday real estate reporter Jonathan LaMantia.
Instead of leaving the market entirely, Long Islanders on the hunt for a house will shift their focus to lower asking prices, said Lisa Zambelli, a loan officer at Cliffco Mortgage Bankers in Uniondale.
"They're not stopping buying," she said. "They're just changing their search criteria."
The higher rates though will still saddle new homeowners with higher monthly payments for years to come and could exacerbate an existing shortage of for-sale listings as homeowners with lower rates hold off on moving.
The average 30-year fixed mortgage rate is still lower than it was at this time last year, when rates hit 6.89%, and remains far below a 2023 peak of 7.79%.
Read more here.
From our readers
Walter Triesch from Facebook asks:
How can I get more of a tax refund than I do?
A large tax refund is nice, but it doesn't mean you paid less taxes. More likely, you overpaid throughout the year and your refund is the government giving your money back, experts said.
"The real goal should be ensuring you pay the lowest amount of tax legally possible while keeping more of your money working for you throughout the year," said Melissa Madsen, director at accounting firm DeFreitas & Minsky in Centerport.
This matters especially for Long Islanders, for whom "taxes are often one of the largest recurring expenses in the household," said Great Neck-based adviser Jason Gilbert of RGA Investment Advisors LLC.
Plan your taxes throughout the year, not just during tax season, by communicating regularly with a financial expert. There could be opportunities — like retirement contributions, tax credits and medical deductions, among other things — that you're missing.
Here's some advice from Gilbert and Madsen:
- Review your tax withholding, especially if there have been changes to your income, bonus, side income, marriage status, children, mortgage or deductions.
- Long Island homeowners may qualify for the STAR credit, which offers some relief on school property taxes. Look into other New York-specific benefits, such as credits for education, and child and dependent care.
- Use tax-advantaged accounts with intention. Gilbert says, "401(k), IRA, and HSA contributions … can be tax planning tools, especially when used consistently."
- Homeowners should run the itemized deduction calculation each year. The standard deduction is not always the best.
- Keep clean records of everything — childcare, charitable giving, business expenses, estimated payments, energy credits and education expenses.
- If you own a business, check with an advisor to make sure it's structured in the most tax-efficient manner.
- Pay attention to tax law changes that could impact you.
Have a question you'd like to submit? Confused by a bill? Spotted a price hike? Ask our team and we might answer it in the next edition. Email walletwatch@newsday.com or click here.
Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.
