Real Talk: Interest Rates — What's Actually Happening

Let's cut through the noise.

Every headline is screaming about interest rates. "Rates are too high!" "Wait for rates to drop!" "The market is crashing!"

As of mid-summer 2026, 30 year fixed mortgage rates remain in the mid 6% range, higher than many buyers would prefer, but well within the range that has been considered historically normal. The exceptionally low 2–3% mortgage rates during the pandemic were the exception, not the rule.

The Facts:

- Current rates are hovering around 6.5-7% for conventional 30-year fixed

- Historically, this is NORMAL. The 2-3% rates during COVID were the anomaly, not the standard

- The Fed has signaled potential cuts, but timing is uncertain

What This Means for Buyers:

Higher rates have reduced competition significantly. Homes that would've had 15 offers in 2021 are now getting 3-5 If they are positioned well. That means less negotiating power for sellers, more time to make decisions for buyers with and better terms.

The Strategy I'm Using for My Clients:

1. Buy now while competition is manageable

2. Negotiate seller credits toward rate buy-downs (2-1 buydown is powerful)

3. Plan to refinance when rates drop (you marry the house, you date the rate)

4. Focus on the monthly payment, not the rate number

The Math That Matters:

If you buy a $1M home today at 7% and refinance to 5.5% in 2 years, you save roughly $900/month. But if you waited those 2 years and prices increased 8-10% (which is likely with rate drops driving demand), you'd pay $80K-$100K more for the same home.

Buying now and refinancing later almost always wins over waiting.

Bottom Line:

Don't let a number on a screen keep you from building wealth. The best time to buy is when you are ready and the right home appears. Everything else is noise.