Strategies that will help you buy a home despite fluctuating rates.

The current interest rate environment is currently a hot topic. With rates fluctuating, many buyers are unsure about taking the plunge into the housing market. However, despite the adjustment from the ultra-low rates of the past, there are still pathways to homeownership in today's market. Let's dive into these solutions to help you make informed decisions about buying a home in the current interest rate climate.

One option is an assumable mortgage, although it's not always straightforward and depends on the current owner's loan type and property appreciation. You may need significant cash to bridge any rate gaps. Alternatively, there are low-rate mortgages available that can help mitigate the impact of higher rates.

“Despite the adjustment from the ultra-low rates of the past, there are still pathways to homeownership in today's market.”

Another strategy is the 2-1 rate buydown program, where you lock in today's rates, which can fluctuate daily. With this program, you persuade the seller or another party to buy down your rate. For instance, in the first year, your rate drops from 7% to 5%, and in the second year, it decreases to 6%, stabilizing at 7% thereafter.

Builders are also providing attractive incentives and competitive rates, albeit not through the 2-1 rate buydown program. Their offers can be a viable option for potential buyers.

It's important to note that while current rates might seem high compared to the recent past, they are within a 50-year historical norm. Although it's an adjustment from the sub-three or sub-four percent rates we were accustomed to, there are still viable solutions. If you have any questions or would like to explore these options further, please feel free to call or email us.