LBI Real Estate Mortgage Rates: November 2026
- Nathan Colmer
- 12 minutes ago
- 3 min read
Mortgage Rates Are Falling – What It Means for the LBI Real Estate Market
LBI real estate mortgage rates have started to decline, and many buyers and sellers are wondering: Will this trend continue? Experts predict rates could ease further over the next year, possibly dipping into the upper 5% range. But what does this mean for Long Beach Island (LBI) real estate? This is one of the many unknowns when looking ot buy, sell or invest in a home in the LBI real estate market. The lending climate is constantly changing, and anyone looking to make a move in the LBI real estate market should consult various lending professionals to obtain the most up-to-date rates and predictions. This will help you understand, along with advice that I can provide as a real estate agent on Long Beach Island, about where prices and market conditions may be heading.
LBI Real Estate Mortgage Rates: The Link Between Mortgage Rates and the 10-Year Treasury Yield on Long Beach Island
For decades, the 30-year fixed mortgage rate has closely tracked the movement of the 10-year Treasury yield—a benchmark for long-term interest rates. When the yield rises, mortgage rates typically follow. When mortgage rates fall, they tend to decline. Historically, the gap between the two (known as the "spread") averages about 1.76 percentage points.
Recently, that spread has been vast due to economic uncertainty, contributing to higher mortgage rates. The good news? The spread is narrowing, and the Treasury yield itself is projected to decline. Together, these factors point toward lower mortgage rates in the months ahead, with some forecasts suggesting rates could dip into the upper 5% range by late next year. If the LBI real estate mortgage rate drops, that could have an impact on the local market.
Lower Rates Could Push Home Prices Higher in the Long Beach Island Real Estate Market
Nationally, falling mortgage rates improve affordability for homebuyers who finance their purchases, often leading to increased demand and upward pressure on home prices. If rates continue to drop, expect more buyers to re-enter the market. That said, it is essential to note that Long Beach Island's market is unique: approximately half of all transactions are cash purchases, meaning mortgage rates have less influence here than in most other markets. While lower rates may attract more financed buyers, LBI's strong cash segment ensures stability and resilience against fluctuations in interest rates. This is why LBI remains a premium coastal market with consistent demand.
Current LBI Real Estate Market Snapshot (November 2026)
Median Sale Price: $2,100,000 (rounded)
Median Price per Sq. Ft.: $1,000
Median Listing Price: $2.3M
Average Days on Market: ~70 days
Active Inventory: ~128 homes (record low for November)
New Listings: Only 55 in October, down from 80 last year
Cash Buyers: Estimated at 45–50% of transactions
Inventory remains extremely tight, especially for properties under $2 million, where demand is strongest. Well-priced homes in this range are still moving quickly—sometimes within a weekend.
What This Means for Buyers and Sellers in the LBI Real Estate Market
Sellers: With Inventory at historic lows, correctly priced homes are attracting strong interest. Even as mortgage rates fall, cash buyers will continue to dominate the market.
Buyers: Lower rates may improve affordability, but competition for well-located homes remains fierce. Be prepared to act quickly, especially in the $1 million to $2 million range.
Pricing your home correctly and understanding LBI's unique dynamics are key to success. Whether you're buying or selling, partner with an experienced local agent who knows the market and can help you navigate these trends. If you are looking to buy, sell, or invest in the LBI real estate market, contact me, Nathan Colmer, for expert guidance backed by years of local experience, deep market insight, and a proven track record in helping clients navigate LBI's unique market. My experience extends over 20 years of selling homes on Long Beach Island, with a special focus on second homes and investment properties. In addition to representing buyers and sellers, I personally invest in the LBI real estate market and can share my firsthand knowledge of this investment strategy. Whether you're searching for a vacation home, planning a wise investment, or ready to list your property, I can offer you personalized strategies and unmatched knowledge to help you succeed.
By: Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
