Rates Are at 7.28%.
Here Are 5 Things NYC Homeowners Are Actually Doing About It.
Waiting for rates to drop isn't a strategy. These are.
The 30-year fixed mortgage rate hit 7.28% as of October 1, 2026 — the highest since early 2025. The Fed hiked rates in September for the first time in three years, and another increase could come before year-end.
If you're an NYC homeowner sitting on a mortgage, the instinct is to do nothing and wait. But "wait for rates to drop" isn't a plan — especially when nobody knows when or if that happens.
Here's what people are actually doing right now.
Tapping Home Equity Instead of Refinancing the Whole Mortgage
The average homeowner with a mortgage has about $181,000 in home equity right now. In NYC, it's often much more.
Instead of refinancing a low-rate first mortgage into today's 7%+ rates, many homeowners are taking out a home equity loan or HELOC as a second lien. This lets you access cash for renovations, debt consolidation, or major expenses without touching the rate on your existing mortgage.
🔑 If you locked in at 3–4% during 2020–2021, this is almost always the smarter move.
Using Bank Statement Loans to Finally Qualify
A huge number of NYC homeowners are self-employed, freelance, or own small businesses. Traditional lenders look at tax returns, and if your write-offs bring your reported income down, you get denied — even though you're earning well.
Bank statement loans use 12–24 months of actual deposits to calculate income. Non-QM products now represent 10% of all mortgage volume nationally. If you've been told you don't qualify for a refinance, this product might change the answer.
Consolidating High-Interest Debt Into the Mortgage
Credit card rates average around 22–24% right now. Personal loans are 10–15%. If you're carrying $30,000–$50,000 in high-interest debt, rolling it into a cash-out refinance — even at 7–8% — can cut your total monthly payments significantly.
The trade-off: the debt is now secured by your home. This only makes sense if you're disciplined about not running the cards back up.
Refinancing Out of an ARM Before the Next Reset
If you took an ARM (adjustable-rate mortgage) in 2021 or 2022 when introductory rates were extremely low, your rate adjustment window is approaching. A 5/1 ARM from 2021 is resetting in 2026. Depending on the index and margin, your new rate could jump to 8% or higher.
🔑 Locking into 7.28% fixed might not feel great, but it beats watching your payment spike unpredictably every year. The stability has value.
Exploring DSCR Loans for Investment Properties
NYC has no shortage of real estate investors — from a two-family in the Bronx to a rental unit in Brooklyn. DSCR loans qualify based on the property's rental income, not your personal income. If the rent covers the mortgage, you're in a strong position to qualify.
This is especially useful if you own multiple properties, have complex tax situations, or don't want to document every income stream to a lender. DSCR products now account for a major share of the non-QM market, and lenders are actively competing for this business.
💡 What All Five Have in Common
None of them require you to wait for rates to drop. They work in the current environment. The right move depends on your situation — your current rate, how much equity you have, what you owe, and how you earn your income.
So what should you do?
Honestly? It depends. There's no universal "right move" at 7.28%. What works for a salaried Manhattan co-op owner is different from what works for a self-employed landlord in Queens.
That's the whole point of Refilytics.
We help you figure out whether any of these options make sense for your numbers.
Book a free call — if the answer is "do nothing," we'll tell you that too.
Sources: Freddie Mac PMMS · HousingWire · NASB · Norada Real Estate