With mortgage rates holding above 7%, many buyers are wondering how to approach the market. As someone who’s navigated shifting landscapes across Coastal Georgia, South Carolina, and Florida for nearly two decades, I always encourage my clients to plan for what’s ahead. Recent data shows it’s wise to build in a rate cushion—think half a point within three months, three-quarters by six months, and a full point by a year. This kind of forward-thinking helps keep affordability in focus, especially as Treasury yields have driven borrowing costs higher.
Interestingly, buyers who purchase later in the year have often seen homes priced about 5% lower in early Q4 compared to late Q2, with fewer competing buyers and more time to negotiate terms. Just last month, the market had about a five-month supply, which meant stronger bargaining power for buyers—not just on price, but also closing costs, discount points, or even temporary rate buydowns.
If you’re still weighing your options, know that while markets are factoring in more Fed tightening, the long-term aim is to cool inflation, which could eventually bring some relief on mortgage costs. Strategic timing and preparation matter more than ever, and it’s my commitment to guide clients through these complexities with education, ethics, and results.