If you have been waiting for higher mortgage rates to bring home prices down, you are not alone. It is one of the most common questions I hear from buyers right now. The short answer: in Northern New Jersey, rates have climbed, but prices have held their ground. Here is what is happening and what it means for your next move.
Rates are up about a full point from last year
According to Freddie Mac’s weekly survey, the average 30-year fixed mortgage rate was 7.24% on October 29, 2026, compared with 6.17% a year earlier. Rates eased slightly at the end of October, but they remain well above where they were in 2025. Persistent inflation and elevated long-term Treasury yields are the main reasons borrowing costs have stayed high.
Prices in Bergen County are holding steady
Despite higher rates, local prices have not dropped. NJ REALTORS data for September 2026 shows a Bergen County single-family median sale price of about $835,000, up roughly 1.2% from a year earlier. Homes sold for an average of 103.4% of their list price, which means many buyers are still paying above asking for the right home.
Price growth has slowed compared with the double-digit jumps of recent years, but slowing growth is very different from falling prices.
Why prices are not coming down
- Inventory is still tight. Bergen County had roughly 2.6 months of supply in September. A balanced market is generally considered closer to six months. Fewer homes for sale keeps competition strong.
- Many owners are locked in. Homeowners who bought or refinanced at 3% or 4% have little incentive to sell and take on a 7% mortgage, so fewer homes come to market.
- Demand for our towns is durable. Strong school districts, easy access to New York City, and established neighborhoods continue to attract buyers year after year.
- Many buyers have equity or cash. Move-up buyers selling a home they have owned for years often bring large down payments, which softens the impact of higher rates.
What higher rates mean for your monthly payment
Here is a simple example. On an $835,000 home with 20% down, the loan amount is $668,000. At 6.17%, the monthly principal and interest payment is about $4,078. At 7.24%, it is about $4,552, roughly $474 more per month, or nearly $5,700 more per year. Taxes and insurance are additional.
That is a real difference, but because prices have stayed firm, waiting for a lower price has not been a reliable way to save money. The bigger lever right now is often the financing and the terms of your offer.
If you are buying
- Get pre-approved early and ask your lender about rate buydowns and different loan programs.
- Focus on monthly payment, not just price. Know the number that works for your budget before you start touring.
- Look for negotiating room. Homes that have sat on the market longer may be open to seller credits that can go toward closing costs or a rate buydown.
- Be cautious about counting on a future refinance. Rates may come down, but no one can promise when. Buy a home whose payment you are comfortable with today.
If you are selling
Low inventory still works in your favor, but today’s buyers are more payment-sensitive and more selective. Accurate pricing from the start matters more than ever. Homes priced right and presented well continue to draw strong offers, while overpriced homes are more likely to sit and need a price reduction.
The bottom line
Higher rates have made buying more expensive month to month, but they have not brought Northern New Jersey home prices down. For most buyers and sellers, the right move depends less on timing the market and more on having a clear plan for your budget, your town, and your goals.
Thinking about buying? Share your search criteria and I will send you homes that fit. Thinking about selling? Request a free home valuation to see what your home could sell for in today’s market.
Sources: Freddie Mac Primary Mortgage Market Survey (October 29, 2026); NJ REALTORS Local Market Update for Bergen County (September 2026). Payment example is an estimate for illustration only and excludes taxes, insurance, and other costs. This article provides general information and is not mortgage, legal, or financial advice. Consult a licensed lender about your specific situation.