Interest Rates Aren't Working in Our Favor... So Here's What We Can Do

By Misty Cooper, Misty Blue Realty

Let's be honest.

If you've been thinking about buying a home, you've probably looked at today's mortgage rates and thought, "Maybe I'll wait."

You're not alone.

Higher interest rates have made it more challenging for buyers to afford the same home they could have purchased a few years ago. Monthly payments are higher, and many families are questioning whether now is the right time to move.

While I understand the frustration, waiting for the "perfect" interest rate may not be the best strategy.

Instead, let's focus on what we can control.

A Lesson I Learned From Buyers in 2021

I remember working with a young couple in 2021. We were looking at homes in Indian Trail, Monroe, and Waxhaw, North Carolina. Their budget was between $250,000 and $300,000.

At the time, nearly every home we viewed prompted the same reaction:

"It's overpriced."

"It's not worth that."

"They want how much for this house?"

Even back then, the $250,000 to $300,000 price range was beginning to disappear. Inventory was limited, competition was fierce, and prices seemed unbelievable compared to just a few years earlier. 

Ultimately, they decided not to buy.

Instead, they rented an apartment that offered a promotional rate with two months of free rent. After the promotion ended, their rent for a one-bedroom apartment of approximately 650 square feet was around $1,400 per month.

I'm still in touch with them today.

Recently, they told me something I hear quite often from people who waited:

"We should have bought something, even if it wasn't perfect."

Today, finding a move-in-ready single-family home in many areas of our market for $250,000 to $300,000 is extremely difficult, and in some neighborhoods it's practically nonexistent.

The point isn't that they made a bad decision. They made the best decision they could with the information they had at the time.

The lesson is that housing decisions should be based on your long-term goals, not just today's headlines.

1. Buy the House, Refinance the Rate Later

Many buyers are hoping rates will decrease significantly in the future. No one can predict exactly what rates will do, but refinancing is always an option if rates improve.

The home you want may not be available later, and home prices could continue to rise. A mortgage rate can change. Missing out on the right home is harder to replace.

2. Negotiate Seller Concessions

Today's market offers opportunities that were difficult to find during the competitive seller's market of recent years.

Many sellers are willing to contribute toward closing costs or temporary rate buy-downs that can lower a buyer's monthly payment during the first few years of homeownership.

An experienced real estate professional can help identify these opportunities and negotiate on your behalf.