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• Mortgage rates in Buffalo, New York, are influenced by economic conditions and personal financial factors.
• Fixed-rate mortgages offer the stability of predictable payments.
• Adjustable-rate mortgages (ARMs) have rates that may change over time.
• FHA loans may require just a 3.5% down payment for those with a credit score of 580 or higher, while VA loans often require no down payment.
• Boosting your credit score and managing your debt level can lead to better mortgage rates.
Introduction to Buffalo, New York Mortgage Interest Rates
If you’re looking for a home in Buffalo, New York, you’re likely also looking for a home loan. This guide will provide you with the information you need to understand how mortgage rates in Buffalo are determined by financial institutions, and what you can do to secure the lowest rate possible for your home purchase. Whether you are a first-time homebuyer or a seasoned owner looking to refinance, understanding how mortgage rates work is crucial to making informed decisions that will safeguard your overall financial health.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
In New York and throughout the U.S., mortgage rates are influenced by a variety of factors. The bond market, and specifically the 10-year U.S. Treasury Note, often signals where mortgage rates are headed. The housing market and the rate of inflation also have an impact on the direction of rates. When the economy is strong, unemployment is low, and inflation is rising, mortgage rates will move higher. But when the economy is slowing, or if there are signs of inflation in the economy, mortgage rates often fall, making loans more affordable.
Your own personal financial profile also contributes to the mortgage rate you’ll be offered. Lenders will examine the following:
• Credit score The higher the score, the lower the rate you’ll likely obtain.
• Down payment Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.
• Debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number..
How Interest Rates Affect Home Affordability
Mortgage rates in Buffalo can have a significant impact on home affordability for those looking to buy. A seemingly small change in the interest rate can actually make a surprisingly big difference in the total cost of a home purchase.
For example, consider a $400,000 loan at 6.50% with a 30-year term. It would carry a monthly payment of $2,528. If the rate increases to 7.00%, the monthly payment increases to $2,661. Over the life of the loan, the borrower with the lower rate ultimately saves nearly $48,000 in interest payments, a considerable sum of money. This highlights why even minor fluctuations in mortgage rates are important.
Understanding historical mortgage rates can help you gain perspective on the current market. While rates have risen in recent years, moving away from record lows seen in 2021, they are still below historical highs observed over the last half-century (as shown in the graphic).
The chart shows how average mortgage rates in New York state tend to compare to those for the U.S. as a whole. Buffalo and its neighbors fare nicely, with New York rates trending below national averages. (The Federal Housing Finance Agency stopped tracking state averages after 2018.)
Year
New York Rate
U.S. Rate
2000
8.10
8.14
2001
7.02
7.03
2002
6.47
6.62
2003
5.63
5.83
2004
5.70
5.95
2005
5.78
6.00
2006
6.44
6.60
2007
6.40
6.44
2008
6.03
6.09
2009
5.06
5.06
2010
4.80
4.84
2011
4.55
4.66
2012
3.62
3.74
2013
3.77
3.92
2014
4.08
4.24
2015
3.81
3.91
2016
3.62
3.72
2017
3.91
4.03
2018
4.37
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Buffalo
There are different types of mortgage loans available in Buffalo, and the type you choose will be another factor in the rate you are offered. Conventional mortgages are the most common and typically require a credit score of 620 or higher. Government loans have more flexible credit requirements. Here are the most common types of mortgages:
Fixed-Rate Mortgage
Fixed-rate mortgages offer bedrock stability, with a consistent interest rate that will give you the same monthly payment over anywhere from 10 to 40 years, depending on the term you choose. Opting for a fixed-rate mortgage is a smart move if you value predictability in your budget and want to shield yourself from potential interest rate hikes down the road. Remember that the longer the term, the lower the monthly payment but the more interest you’ll pay over the life of the loan.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) often start with a lower interest rate than fixed-rate loans. This feature makes them quite attractive for individuals who are anticipating selling their property before the introductory rate concludes and the rate resets according to the market. These regular rate adjustments could lead to an increase in your monthly mortgage payments. ARMs might be a suitable choice if you anticipate moving or doing a mortgage loans prior to the rate adjustment taking effect, or if you believe that rates are headed down and you hope to capture those savings.
FHA Loan
With Federal Housing Administration backing, FHA loans are known for their more forgiving eligibility requirements compared to traditional loans. A 3.5% down payment is all that’s needed, provided you have a credit score of 580 or better, making FHA loans a popular choice for first-time homebuyers. And even some homebuyers with lower credit scores can qualify if they put down a 10% down payment.
VA Loan
VA loans are a special benefit available to those who have served or are currently serving in the military, including eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the most significant benefits of a VA loan is that they don’t require a down payment, which can make buying a home much more accessible.
Jumbo Loan
In Buffalo, as in most areas of the U.S. (and all of New York outside the New York City area), conventional mortgage loans in 2025 have a cap of $806,500 for a single-family home. Jumbo loans are for qualifying borrowers whose mortgage needs exceed this conforming loan limit. In Buffalo, a jumbo loan can be a viable option for more expensive homes. These loans often come with higher interest rates due to the increased risk for the lender, but they can provide the necessary financing for luxury properties. As with any mortgage, be sure to compare mortgage rates in Buffalo to find the best available deal.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Should You Wait for Interest Rates to Drop?
Buffalo homebuyers might be wondering if it’s smart to wait for interest rates to drop before making a purchase. While it’s always nice to get a good deal, current predictions suggest that rates will remain relatively stable. According to Fannie Mae’s latest forecast, the average mortgage rate is expected to end 2025 at around 6.30%. So, what does that mean for you? The decision to buy a home is a personal one and depends on a variety of factors, including your budget and the current market conditions in your area. Are home prices expected to rise? If so, this might be time to buy. Do you need to buy because you recently relocated to the area or find your family growing? If so, mortgage rates may not be the top concern.
Cost of Living in Buffalo
The cost of living in Buffalo, New York, is more manageable than in other parts of the state. The median sale price for a home here is a relatively affordable $179,000, according to Redfin. But the market is somewhat competitive, and multiple offers are not uncommon. Buffalo offers a great quality of life for the money, with a variety of cultural and outdoor activities to enjoy.
New York City
Cost of Living
Albany
104.8
Buffalo
95.7
Herkimer County
92.9
Nassau County
136.0
New York (Brookylyn)
161.1
New York (Manhattan)
230.6
New York (Queens)
149.8
Ostego County
99.6
Rochester
99.1
Syracuse
102.9
Utica-Rome
95.9
Get Your Best Possible Rate in Buffalo
To secure the best possible mortgage rates in Buffalo, focus on caring for your credit score and actively lowering your debt-to-income (DTI) ratio. A higher credit score and a DTI below 36% can potentially lead to better interest rates on your mortgage. This means checking your credit report, correcting any inaccuracies, and paying bills on time. Reduce your debts as much as possible. And consider how large a down payment you can put down without pinching your budget — a larger down payment will help your chances of getting a good rate. Consider going through the mortgage preapproval process with a lender to understand exactly what your borrowing capacity looks like and what rate you’ll qualify for.
Helpful Tools & Calculators
An online mortgage calculator will be a useful tool during the process of budgeting for a new home, as will a home affordability calculator. In fact, you’ll want to keep all three of these useful calculators close at hand:
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Evaluate Loan Offers in Buffalo
Securing a competitive mortgage rate is a project well worth your time. Even a fraction of a percentage point can add up to significant savings over the life of your loan. You’ll want to compare interest rates and fees from multiple lenders. Don’t just look at interest rates. Pay close attention to the annual percentage rate (APR), which provides a comprehensive view of the costs involved in a loan. Once you’ve found an offer that suits you, consider paying a fee to lock in your rate for up to 90 while you finalize your house hunt. It will protect you against any instability in a mortgage market where rates can be unpredictable.
Buffalo Mortgage Resources
If you’re buying your first home or have limited financial means (or both), New York offers resources and programs to support you on your journey, including down payment assistance programs. (It’s worth noting that you might qualify as a first-time homebuyer if you haven’t owned a primary residence in the past three years.) The State of New York Mortgage Agency (SONYMA) is tasked with expanding access to affordable homeownership. Its Down Payment Assistance Loan, for example, is a 0% loan for a down payment that is forgiven after 10 years.
Closing Costs in Buffalo
If you’re buying a home in Buffalo, you can expect to pay between 2% and 5% of the total loan value in closing costs. Several factors can influence your closing costs, including the home’s value and location. Costs can include loan origination fees, property appraisal fees, and title insurance coverage. Examining these costs will be part of your process when shopping around with different lenders.
The Takeaway
Buffalo is a promising spot for those seeking to establish roots in a vibrant city at a relatively affordable price. With a diverse array of mortgage options available, it’s important to stay informed and explore the various assistance programs to make the best financial decisions. Whether you’re a first-time buyer or a seasoned homeowner, carefully choosing a mortgage can significantly impact your financial well-being. Take the time to do your research, and you’ll be well on your way to achieving successful homeownership in Buffalo.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
While it’s hard to pinpoint the future of interest rates, keeping a close eye on economic factors like inflation and Treasury bond prices can help homebuyers get a sense of where mortgage rates in Buffalo may be going. When rates on the 10-year U.S. Treasury Note rise, rates may be headed up as well. If you’re worried about rates climbing, you can always lock in a rate that gives you peace of mind and financial security.
Will Buffalo, New York home prices ever drop?
The real estate market in Buffalo, New York has had its highs and lows, but remained relatively stable in the last few years. And with a median sale price that’s less than $200,000, it’s hard to see Buffalo’s housing prices dropping significantly in the future. (The median sale price in the U.S. as a whole is more than double what Buffalo buyers are paying.) Economic factors — supply and demand, interest rates, and local economic conditions — can significantly sway the market, so keep things like population growth and the health of the job market in Buffalo in sight.
Is it the right time to invest in a home in Buffalo, New York?
Deciding whether to buy a house in Buffalo will depend more on your personal financial readiness than on the prevailing market conditions. Mortgage rates in Buffalo play a role in overall affordability. If you are financially prepared to purchase property and you find a competitive interest rate, it could be a good time to enter the market and buy a home. However, it’s important to carefully consider your overall financial goals and the current economic climate as a whole before making such a significant decision about homeownership.
How can I lock in a mortgage rate?
To lock in a mortgage rate, you’ll need to assess your finances and shop around to find the loan with the best rate, term, and fees for the budget you have. Once you find your ideal loan, locking it in is just about making a simple call or sending a message to the lender. You’ll pay a fee to lock in your preferred rate for up to 90 days while you finalize your home purchase.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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