Bargain Hunting With Rates Above 7%

With mortgage rates holding above 7%, affordability is understandably on everyone’s mind. I’m seeing buyers in Massachusetts and Rhode Island weighing their options carefully as Treasury yields keep borrowing costs elevated and the market anticipates more moves from the Fed. If you’re planning your next steps, it’s wise to prepare for possible rate shifts: studies suggest factoring in a half-point increase within three months, three-quarters over six, and a full point by the one-year mark. Interestingly, those who buy later in the year often gain some leverage—typical homes have been about 5% less expensive in early Q4 compared to late Q2, with less competition and more room to negotiate. Last month’s inventory was around a five-month supply, giving buyers more power to discuss price, closing costs, or even temporary rate buydowns. While the market remains watchful for further Fed action, the broader aim is to see inflation cool, which could eventually bring mortgage costs down. My goal is to help you make sense of these shifts so you can move forward with confidence, whether you’re ready now or just keeping an eye on the horizon.