Bargain Hunting With Rates Above 7%

With mortgage rates holding steady above 7% and market watchers anticipating additional moves from the Fed, affordability remains front and center for many buyers. In these conditions, strategic planning is more important than ever. Recent studies suggest it's wise to build in a rate cushion: anticipate up to a half-point increase within three months, three-quarters within six, and as much as a full point within the year. Interestingly, those who purchase later in the year often find increased leverage—typical homes run about 5% less in early Q4 compared to late Q2, with fewer competing buyers and greater flexibility at the negotiating table. Last month’s nearly 5-month supply meant buyers could negotiate not just on price, but also on closing costs, discount points, or even temporary rate buydowns. While the market is still adjusting to possible further Fed tightening, the longer-term objective remains: cooler inflation that can ultimately lead to more favorable mortgage rates. My commitment to expert market knowledge and high-level service means guiding clients through these nuanced opportunities, ensuring you have the insight and support you deserve, wherever your real estate goals may lead.