09/18/2026
Happy start of the weekend!!! I wanted to give you my current perspective on the recent Fed Rate hike and the close to 7% +/- mortgage rate environment we appear to be settling into.
While today’s higher interest rates can feel like a hurdle, they actually mark a return to a healthier, more balanced housing market—one where buyers finally get their leverage back.
Why Higher Rates Give Buyers the Upper Hand
✅When rates were artificially low, aggressive bidding wars, waived contingencies, and runaway price hikes were standard. Moderate-to-higher rates cool off wild demand, putting an end to chaotic homebuying sprees and giving buyers real negotiating power:
☑️Lower Selling Prices: Sellers can no longer overprice homes and expect multiple offers on day one. To attract serious buyers, prices must come down to earth.
☑️More Contingencies & Repairs: Buyers can once again request inspection contingencies, home warranties, and repairs without fear of immediately losing the house to a cash-frenzy offer.
☑️Seller Concessions: Asking sellers for closing cost credits, repair allowances, or interest rate buydowns (like a 2-1 buydown) is back on the table.
☑️Time to Think: Homes stay on the market longer, giving buyers the breathing room to weigh decisions rather than rushing into panic purchases.
♻️The "New Normal" is Actually the Old Normal
It helps to put current borrowing costs into perspective. The sub-3% rates seen during the early 2020s were an unprecedented anomaly triggered by emergency economic policy. Historical data tells a very different story:
The 50-year historical average for a 30-year fixed mortgage in the U.S. hovers around 7.7%.
Rates in the 6% to 7% range align directly with standard, healthy economic conditions seen throughout the late 1990s and mid-2000s.
✅Today’s rate climate isn't an aberration—it is a return to long-term historical norms. Buyers who embrace this "new-old normal" gain a distinct advantage: you marry the price of the home, but you only date the rate. Negotiating a lower purchase price and better terms today establishes long-term equity, with the option to refinance whenever rates shift down the road.
Drop me a line to discuss your real estate questions/goals.
HAVE A GREAT WEEKEND!!!!
