Manhattan Homebuyers Risk Overpaying by Waiting for Lower Mortgage Rates

Written by:

Rudi Davis

Date:

17 Feb 2026

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Manhattan residential buyers are making a costly mistake by focusing solely on interest rates, according to Justin Neissani, a licensed real estate salesperson at The Corcoran Group. Although many buyers hesitate to act because mortgage rates are in the six percent range, Neissani argues that this narrow focus overlooks a key market reality: the purchase price is fixed, whereas interest rates can be refinanced.

“People can always refinance their interest rate, but they can’t refinance a purchase price,” Neissani says. He cautions that waiting for rates to fall often backfires, as increased demand pushes property prices higher, thus erasing any savings from a future refinance.

Why Waiting for Lower Rates Can Backfire

Neissani points out that many buyers, including those with financial expertise, fall into the trap of waiting for a better rate. The logic seems sound on the surface: wait for rates to drop, then buy and enjoy lower monthly payments. However, he says this strategy ignores how the market responds when rates actually do fall.

When interest rates decline, pent-up demand is unleashed. Buyers who were sitting on the sidelines flood into the market, bidding up prices through basic supply and demand. Neissani notes that the resulting jump in purchase prices often exceeds the benefit of a lower interest rate. For example, a buyer who waits for rates to drop from 6.5 percent to 5.5 percent may encounter homes priced 10 to 15 percent higher than before. While monthly payments can be adjusted through refinancing, the higher purchase price remains locked in.

“Even when interest rates do drop, it’s going to flood the market with more buyers and drive up the price,” Neissani explains. He emphasizes that the financial analysis usually favors buying at today’s prices and refinancing later, rather than waiting and paying more for the same property.

Fear and Uncertainty Are Holding Buyers Back

According to Neissani, the hesitation in Manhattan’s market is driven by factors beyond rates. Uncertainty about city leadership and the broader economic environment has created a “very fear-based market,” with buyers reluctant to make decisions. Headlines about political changes and financial volatility have made many would-be buyers cautious, even as market fundamentals remain stable.

This fear-based approach, Neissani argues, creates a disconnect between what buyers see in the news and the underlying realities of the market. Those who delay their purchase may face greater competition and higher prices once sentiment improves and more buyers re-enter the market.

The Hidden Cost of Waiting: Time Kills Deals

Beyond interest rate anxiety, Neissani warns that time itself is a significant threat to successful transactions in Manhattan. “The number one killer of deals is time,” he says. Extended timelines increase the chances that buyers will reconsider, develop cold feet, or encounter new obstacles.

Delays are often compounded by what Neissani describes as “a bad team.” Even if a buyer has a skilled agent, inexperienced or inattentive attorneys, appraisers, or other professionals can slow the process and introduce unnecessary complications. He singles out attorneys who are unfamiliar with New York’s fast-paced market, noting that their lack of local experience can add days or weeks to a deal and sometimes derail it entirely.

“If not communicated properly, and without the right knowledge, a single misstep can destroy a deal in a heartbeat,” Neissani says.

Corcoran’s Strategy: Education Over Emotion

At The Corcoran Group, Neissani works with buyers across Manhattan, Brooklyn, and Queens, from studio apartments to multi-family buildings. The firm prioritizes client education, ensuring buyers understand which aspects of a transaction are fixed, such as the purchase price, and which can be adjusted later, such as the interest rate.

Neissani believes a well-prepared team and a proactive broker can solve most problems before they reach the client. “If you hear no problems, that means your broker is doing an amazing job,” he says. “And if there are problems and your broker solves them before they come to you, you have an amazing broker.”

Looking Ahead: A Narrow Window for Savvy Buyers

For both institutional investors and serious residential buyers, Neissani suggests the opportunity to buy before the next surge in demand may be shorter than many expect. Once rates begin to drop, competition and prices are likely to rise rapidly. Buyers who understand the difference between permanent and temporary transaction costs — and act before the crowd — may secure the best long-term value in Manhattan’s market.