Is There Anything Good About 7.5% Mortgage Rates?
If you’ve been watching mortgage rates and feeling discouraged, I get it. Higher rates mean higher monthly payments, keeping the home you want out of reach. There’s a bright side, and many buyers miss it.
Yes, there are real advantages to buying when rates are high. Here are two of the biggest.
1. Less competition
When rates are high, many buyers decide to sit on the sidelines. They’re waiting for rates to come down before they make an offer, and that could be a year away, or longer. No one can predict exactly when rates will fall.
Fewer buyers in the market means less competition for you. You may have more homes to choose from, more time to make a decision, and a better chance of getting your offer accepted without a bidding war. When rates do drop, those waiting buyers will come back all at once, and the competition will come back with them.
2. Sellers are more willing to negotiate
Sellers know that high rates make it harder for buyers to afford their homes. Many are ready to work with you right now, and some are willing to offer a credit toward your closing costs that you can use to buy down your interest rate.
With a seller credit, you can buy down your rate and lower your payment. It can be a permanent buydown, where the credit helps lower your rate for the life of the loan or it can be a temporary buydown, like a 2-1, where your payment is reduced for the first two years.
What if rates come down later?
If rates drop after you buy, you may be able to refinance to a lower rate. Refinancing isn’t guaranteed, and it comes with its own costs, but buying now doesn’t lock you into today’s rate forever. Waiting for the “perfect” rate, on the other hand, can mean missing out on the right home, and facing more competition when everyone else comes back.
So is now a good time to buy?
It depends on your goals and your budget, and that’s exactly what I’m here to help you figure out. If you’re ready to explore your options, I’d love to talk through your numbers and see what a seller credit or buydown could do for you.
Reach out anytime, and let’s find out what makes sense for your next move.
