Hi Reader,

The average 30-year fixed mortgage rate ended the week at 6.83%, up slightly from 6.81% the prior week, according to Mortgage News Daily. Freddie Mac reported an average rate of 6.66%, up from 6.58% the week before.

Why rates moved higher

The biggest story this week, and throughout July, was the renewed relationship between oil prices, inflation fears and Treasury yields.

Treasury yields initially moved lower as the U.S. and Iran paused hostilities and oil prices fell. But that relief didn’t last. Crude oil ultimately rose more than 20% during July as geopolitical tensions returned, reviving concerns that higher energy costs could feed inflation.

​The Federal Reserve held its benchmark rate steady this past week, although three members voted for an increase. Markets are now trying to determine whether the Fed will raise rates in September or remain on hold.

There were reasons for the Fed to be patient: second-quarter economic growth slowed, and the latest PCE inflation reading came in softer than last month. But renewed energy inflation concerns and uncertainty surrounding the Fed’s next move pushed longer-term Treasury yields higher, and with it, mortgage rates.

The 10-year Treasury yield ended July at 4.743%, its highest level since January 2025. The 30-year Treasury yield reached 5.274%, its highest level in 19 years.

The bottom line for buyers: mortgage rates are not rising because of one isolated economic report. The market is balancing slower growth and cooling inflation against rising oil prices and the possibility that inflation could become more difficult to contain. Until that picture becomes clearer, we should expect rates to remain somewhat bumpy.

Brooklyn condos are gaining momentum

Despite the higher-rate environment, Brooklyn condo activity strengthened considerably during the second quarter.

According to Douglas Elliman’s latest Brooklyn market report:

• Signed condo contracts increased 5.2% year over year
• Recorded condo sales increased 12.7% year over year
• The median price of condos entering contract rose 14.8%, to $1.49 million
• The median recorded sale price increased 5.6%, to $1.15 million

In other words, buyers did not disappear while waiting for mortgage rates to fall. Brooklyn condos continued to trade, and both activity and prices moved higher.

Condo financing is about to become more complicated

​Beginning today August 3, Fannie Mae will retire the Limited Review process, while Freddie Mac will retire its comparable Streamlined Review process for condo projects.​

For conventional loan applications dated August 3 or later, projects that previously qualified for these abbreviated reviews will generally need to undergo a Full Review, unless the loan qualifies for a waiver of project review.

That means lenders may need to examine more of the building’s financial and physical health, including its budget, reserves, insurance, litigation, special assessments and any deferred maintenance.

This is where working with someone who truly understands condo financing matters. Condo approval is not simply another document on an underwriting checklist. It is a second layer of underwriting applied to the building itself, and small details can determine which lenders and loan programs are available.

I’m including a recent message from a loan processor I work with below, not because I need an excuse to show off, but because condo files are an area where experience, persistence and knowing how to present the building can make an enormous difference.

Have a client looking at a condo? Send me the address early. I can help identify possible financing issues before the buyer is deep into the transaction.

What is better than a happy client?

I hope your week is off to a great start!

-Nicole

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Nicole Hamilton Bernheimer | NMLS #2354049

nicole@homeownering.com, 917-650-0167

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