Bargain Hunting With Rates Above 7%

With rates holding above 7%, many buyers are recalibrating their strategies—something I often advise on, drawing from my 25+ years as both a Real Estate Broker and Mortgage Broker. Recent market movements have kept borrowing costs elevated, with Treasury yields pushing affordability to the forefront of every purchase conversation. Planning ahead has never been more important: one study found that adding a rate cushion—half a point within 3 months, three-quarters by 6 months, and a full point by year’s end—can offer valuable peace of mind. Interestingly, those who purchased later in the year typically saw homes about 5% less expensive in early Q4 compared to late Q2, along with less competition and more negotiating time. Inventory has hovered around a 5-month supply recently, giving buyers more room to negotiate on price, closing costs, discount points, or even temporary rate buydowns. Although the market is still watching for further Fed tightening, the long-term objective is a cooler inflation outlook—which could ultimately bring relief on mortgage rates.