Recently, we spoke with Trevor Higgins. Aside from being a great friend, he’s also our preferred lender, so he was the perfect person to talk to about interest rates and the buyer market. With things changing at a rapid pace, is it still a good time to buy? We’ll answer this question and more in our conversation.
Some buyers are certainly spooked by our higher interest rates. However, our shifting market presents new opportunities for buyers. For example, Trevor offers a program called a 2-1 buydown. Essentially, you pay 2% of the loan principal upfront to discount your rate by 2% for the first year and 1% for the second year. This is a fantastic option for people who want to buy but are discouraged by our high rates.
“Your dream house won’t stay on the market for long, but you can always refinance if rates fall.”
Since our market is shifting, some sellers are even willing to pay the initial cost for you. There is more inventory than we’ve seen in a long time, and demand has softened due to rising rates. This means that you have more options and less competition; **it’s the perfect time to buy a home. **
If you work with a great agent and lender, you can negotiate a situation where your seller pays for your 2-1 buydown. Since the average rate is around 5.5% right now, you’ll only have a rate of 3.5% your first year. You’ll also have tons of options to choose from, so you can finally get the home of your dreams.
No one knows where mortgage rates are heading, but it’s unlikely they’ll stay this high forever. In the real estate industry, we have a saying: Marry the home, date the rate. In other words, your dream house won’t stay on the market for long, but you can always refinance if rates fall.
If you need a great lender to walk you through the loan process or are interested in a 2-1 buydown, reach out to us. We’d love to put you in touch with Trevor. As always, call or email with any real estate questions you might have. We look forward to hearing from you!
