Yeah Yeah… I Know You’ve Heard About Mortgage Rates (But Let’s Talk NJ)

Yeah, yeah, I know. By now every realtor, lender, podcast, headline, and group chat has told you about Trump’s latest move to lower mortgage rates.

You’ve probably heard some version of “rates are coming down!” more times than you can count. But before you tune it out completely, we actually need to talk about what this could mean, not in theory, but here in New Jersey, where our market plays by its own rules.

Here’s what’s happening. The Trump administration has announced a plan to direct up to $200 billion into the purchase of mortgage-backed securities, with the goal of nudging mortgage rates lower. When demand for these bonds increases, yields tend to fall, and mortgage rates often follow. Almost immediately after the announcement, we saw mortgage rates dip below 6% for the first time in quite a while, which explains why this news is everywhere.

For buyers, especially in New Jersey, even small rate changes can matter. A half-point drop doesn’t just feel good emotionally, it can mean hundreds of dollars a month in savings, a bit more buying power, or the difference between qualifying and not qualifying at all. That’s huge in a state where prices are high and competition is real.

But here’s the angle you may not be hearing as much: lower rates don’t create more homes. Inventory in much of NJ, particularly Bergen, Essex, and Passaic counties, is still tight. If rates continue to ease, we could see more buyers jump back in faster than sellers list, which may actually keep prices competitive rather than bring them down. Cheaper money doesn’t always equal cheaper homes.

For sellers, this could be a quiet advantage. Even modest rate relief can bring more qualified buyers into the market, increase showing activity, and strengthen offers. At the same time, many homeowners are still rate-locked into mortgages in the 3-4% range, which continues to limit new listings. That combination, renewed demand with limited supply, often favors well-positioned sellers.

The bottom line is this: the $200 billion bond purchase is a nudge, not a reset. It won’t magically fix affordability or inventory issues, but it does change the conversation. Strategy, timing, and understanding your specific local market matter more now than reacting to national headlines.

So let me ask you, does this news change how you’re thinking about buying or selling this year? 

Do you think slightly lower rates will bring more movement to the NJ market, or will limited inventory keep things competitive? 

Hit reply and tell me what you think. I’d genuinely love to hear your take.

As always, I’m here to help you make sense of the noise and figure out what actually makes sense for you.