Many buyers are clinging to old rates and missing real chances to buy the right home in today’s more negotiable market.
Many buyers are holding off, hoping interest rates will return to the historic lows we saw during the pandemic. But the truth is, those days may be behind us. Most experts agree that unless we face another global crisis, we’re unlikely to see rates as low as 2.5% or 3% again. If you’re waiting for the market to look like it did in 2020, you could be stuck waiting for a long time—and miss the chance to move into a home that actually fits your life today.
Understanding proximity bias. Proximity bias is our tendency to judge things differently based on how close or far we are from them. Because many homeowners locked in rates under 3% just a few years ago, that number still feels like the benchmark. But the more time passes, the more we need to adjust to what’s realistic in today’s market. Holding out for something that may never return could stop you from making a smart move now.
Waiting could keep you stuck in the wrong home. If your current home no longer fits your needs, whether it’s too small, in the wrong location, or no longer serving your lifestyle, don’t let a great rate keep you from making a necessary change. Your mortgage rate is important, but so is your quality of life. People are still moving for all the usual reasons: marriage, growing families, job changes, or downsizing. And they’re doing it because life doesn’t stop for interest rates.
The hidden opportunity in today’s market. While everyone focuses on interest rates, they’re missing the bigger picture. Right now, buyers actually have negotiating power you won’t see when rates eventually dip. Sellers are more willing to make deals today, offering price reductions, closing cost assistance, and repair concessions. But this advantage disappears the moment rates start falling.
One of the best strategies in today’s market is to buy at a fair price now and refinance when rates drop in the future. This gives you the advantage of better pricing and negotiability today, with the option to lower your monthly payments later.
Let’s talk if you’re stuck between a reasonable rate and a not-so-good fit. Call me at (503) 522-0090 or email sarita@asksarita.com. I’ll help you create a clear, confident plan that makes sense for your life right now.
