Are Mortgage Rates Back to “Normal”?

The Lighter Side of Real Estate • February 11, 2023

If you think mortgage rates are at an all-time high, you wouldn’t be alone. According to this NerdWallet article, 61% of Americans think they’re “unprecedented.” And you’re also not alone if you’re still planning on buying a home this year, despite that sentiment, considering 28 million people plan to do so according to their survey!

The thing is, mortgage rates aren’t actually the highest they’ve ever been; not by a long shot. Those low rates buyers were getting over the past few years were historically unusual, and now they’re not just back to “normal”—even below normal—considering data from Freddie Mac shows that 30-year mortgage rates have averaged 7.75% over the last 50 years.

When rates were unusually low, it almost didn’t matter if you weren’t careful about the type of loan or terms you agreed to with a lender. But now that rates have crept up, you want to make sure you not only get the lowest rate you can, but also the best type of loan and terms possible.

So let’s take a look at 5 things you should do to make sure you get the best loan possible in this market, or any other market for that matter:

1. Get Pre-approved Ahead of Time

You should always get pre-approved before you actually start looking at homes you want to buy, but many people don’t. On the most basic level, doing so helps you know that you can actually get a loan, and how much you can afford to spend. That helps you to avoid the wasted time and heartache of finding a house you love, only to find out you can’t actually afford to buy it.

But beyond that, getting pre-approved ahead of time is a good chance to speak to a few mortgage professionals and get a feel for them, which leads to…

2. Find a Mortgage Professional You Trust

As with any profession, not all mortgage professionals are going to provide you with the best advice and service. Some will woo you with what sounds like the best rate, while glossing over other costly terms, or switching the rate on you at the last minute.

Look for one you not only trust is being transparent and honest about the rates and terms they can offer you, but who also takes the time to explain all of your options—even if their rate doesn’t sound as low as others.

3. Choose the Type of Loan That Is Best for You

The historical rates mentioned above are based upon 30-year, fixed rate loans. Those are probably the “safest” and most predictable loans. But there are other options, like 7 or 15-year adjustable rate loans, which will usually have a lower rate, but may actually cost you more per month due to the shorter term of the loan, and the rate can go up after a number of years at a fixed rate. It could be a great way to save on interest and make more payments toward principal, if you know you’re going to sell or refinance before the rate changes. And who knows, the rates could be lower by then anyway.

Adjustable rate mortgages are just one example of the many different options you may have. If you choose a great mortgage professional to work with, he or she can help you analyze all of the different types of loans available to you, and help you figure out which one makes the most sense for your situation.

4. Don’t Stretch Yourself Financially

Just because you’re pre-approved for a certain amount doesn’t mean you have to (or should) spend every penny you can.

It’s not uncommon to be pre-approved for more than you may actually be comfortable spending per month on a mortgage. While a lender’s calculations should indicate that you can handle the payments on an ongoing basis, only you truly know your lifestyle and spending habits.

Ask your mortgage professional to give you an accurate estimate of how much per month it will cost you, if you were to spend as much as you’re approved for. (And remember to factor in property taxes and insurance, which will vary from one house to another.) Then think about paying that amount every month. Is it something you’ll be able to comfortably swing? Will it impact the things you like to spend money on weekly, monthly, and yearly?

You can also ask the mortgage rep to figure out about how much of a loan you should take on based upon a monthly payment you’re comfortable with, and use that as the top amount of your budget, even if it’s lower than what you’re actually approved to spend. And you can even try and spend less than that amount, if you want to really play it safe!

5. Shop and Negotiate for the Best Rate

While the rate isn’t the only or most important thing to consider, you should still shop around to make sure you’re getting the best rate possible. As mentioned above, when speaking with lenders, size up whether they’re being entirely honest and transparent about the rate and terms they’re offering.

If you get a better rate from one lender, see if the lender you trust the most can match it, or even beat it. But even if they can’t, keep in mind that it may be worth taking a slightly higher rate if you trust one lender above others who offer you a better rate.

The Takeaway:

Many people feel like mortgage rates are higher than they’ve ever been, but they’re actually not. In fact, they’re currently lower than the average rate over the past 50 years.
While being careful about the lender and loan you chose to go with didn’t matter as much when rates were unusually low over the past few years, now it pays to go back to basics and make sure you:
  • Get pre-approved ahead of time
  • Work with a mortgage professional you trust
  • Choose the best type of loan for your needs, situation, and qualifications
  • Avoid stretching yourself financially
  • Shop and negotiate for the best rate you can get


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By The Lighter Side of Real Estate July 29, 2025
For a while now, buyers were waiving their inspection contingency just to stay competitive in bidding wars in many markets. But that’s starting to shift. While waiving inspections still happens in some areas and price points, it’s no longer the default move for every buyer. More and more, we’re seeing offers that include the right to inspect—especially in markets where things are cooling just a bit or buyers feel they have some leverage. If you’re planning to sell, it’s time to expect that your buyer may want a home inspection. And honestly? That’s completely normal. In fact, doing a home inspection is far more common than skipping one. So don’t take it personally or assume something’s wrong when a buyer wants to have a closer look at the property. Is there a chance your buyer will discover an issue with your house? Of course. Could they come back with a list of things they want you to fix or credit—some of which might feel a little over the top? Yup. Will any of it be a deal breaker? Maybe… According to a recent article from the National Association of REALTORS®, the number of home sales falling out of contract has been on the rise. Around 6% of contracts were canceled in recent months—and in May alone, nearly 15% of homes under contract didn’t make it to closing. Deals can fall apart for all kinds of reasons, but one of the biggest culprits behind many of those cancellations is likely issues uncovered during the home inspection. Which is why the article suggests getting ahead of potential problems by doing a “pre-inspection” before listing. It’s not a bad idea in some situations—but it’s not the right move for everyone. So before you schedule that pre-listing inspection, here are a few things to consider. 3 Things to Consider Before Getting a Pre-inspection on Your Home With the growing number of deals falling apart, it’s no surprise that some sellers are being advised to get a pre-listing inspection—essentially hiring a home inspector before the house even hits the market. On the surface, it sounds like a smart strategy: find out what’s wrong before the buyer does, fix what needs fixing, and reduce the risk of surprises that could derail the deal later. And in some cases, it really can help. But before you add it to your to-do list, it’s worth looking at the bigger picture. A pre-inspection isn’t a one-size-fits-all solution—and it may come with a few unintended consequences sellers don’t always consider. Once you know about it, you have to disclose it. Let’s say you already know there’s a water stain on your ceiling. You’ll need to disclose or fix that anyway. But maybe you haven’t been up in the attic in a while, or ever. If your inspector finds signs of a roof leak up there, that’s something you now know about. Which means it’s something you now legally need to disclose to buyers, even if it wasn’t visible before. This isn’t about hiding things (that’s never the goal), but it’s worth understanding: a pre-inspection can expand your disclosure obligations. The buyer will probably still get their own inspection. Just because you’ve had one done doesn’t mean the buyer will accept it and move on. In many cases, they’ll still bring in their own inspector. And guess what? Their inspector might see something yours didn’t. Or interpret the same issue differently. So while a pre-inspection can help reduce surprises, it’s not a magic shield against inspection negotiations later on. You might feel pressure to fix more than you need to. With a pre-inspection, there’s a temptation to fix every single issue before going to market. That might not be necessary—or even wise. Some buyers are perfectly fine with small cosmetic flaws or outdated systems, especially if they’re reflected in the price. Fixing things just because they showed up in your report could cost you time and money without adding much return. You may be better off just letting the buyer do their own inspection and letting you know what they found and what they feel needs to be addressed. Lean on Your Agent’s Advice There’s no one-size-fits-all answer to whether you should do a pre-inspection or not. It really depends upon your particular home, the local market conditions, and even the price range your house falls within. So before you schedule any inspections—or skip them altogether—have a candid conversation with your agent about what makes the most sense for your situation. Your agent can help you weigh the pros and cons based on your home’s condition, your local market, and the type of buyer you’re likely to attract. They can also refer you to trusted home inspectors—ones who provide thorough, honest reports at a fair price. (Not all inspectors are created equal, and your agent likely has experience working with the good ones.) The Takeaway: More buyers are doing inspections again. That’s not a bad thing. It’s just a return to normal—and a chance for buyers to feel confident about the home they’re purchasing. As a seller, that means being prepared for the possibility of inspection negotiations and knowing how to navigate them without letting the deal fall apart. While a pre-inspection can be helpful, it’s not a one-size-fits-all solution. It may prevent surprises, but it could also open up new ones. Before deciding, talk to your real estate agent. They’ll help you understand what makes sense in today’s market—and how to move forward with confidence.
By KCM July 27, 2025
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By KCM July 24, 2025
Why a Newly Built Home Might Be the Move Right Now Are you looking for better home prices, or even a lower mortgage rate? You might find both in one place: a newly built home. While many buyers are overlooking new construction, it could be your best opportunity in today’s market. Here’s why. There are more brand-new homes available right now than there were even just a few months ago. According to the most recent data from the Census and the National Association of Realtors (NAR), roughly 1 in 5 homes for sale right now is new construction. So, if you’re not looking at newly built homes, you’re missing out on a big portion of what’s available. And with more new homes on the market, builders are motivated to sell their current inventory. As a result, many are taking steps to draw in buyers. Builders Are Cutting Prices According to Buddy Hughes, Chairman of the National Association of Home Builders (NAHB): “Almost 40% of home builders reduced sales prices in the last month . . .” That means builders are being realistic about today’s market and adjusting to what buyers can afford. It’s their way to keep their inventory moving. So, builders may be more willing to negotiate price than you’d expect – and that means your dollar may go further if you buy a newly built home. Lean on your agent to see what’s available and what incentives builders are offering in and around your area. Builders Are Offering Lower Mortgage Rates Here’s something most people don’t know. Right now, buyers of brand-new homes often get better mortgage rates than buyers of existing homes. That’s because many builders are also offering rate buydowns to make their homes more attractive and keep sales moving. Basically, they’re willing to chip in to lower your rate, so you’re more likely to buy one of their homes. Data from Realtor.com shows, in 2023 and 2024, buyers of newly built homes got a mortgage rate around half a percent lower compared to those who bought existing homes (see graph below): That kind of savings adds up and makes a big difference when you’re figuring out your monthly budget. So, if you haven’t found something you love yet, it’s time to add newly built homes to your search. You may find that what you’ve been looking for is already out there, it’s just in a new home community. Bottom Line More choices, the potential to negotiate on the price, and maybe even better mortgage rates make these options a bright spot in today’s housing market. If you haven’t considered a newly built home yet, what’s holding you back? Let’s talk about it and see if it’s worth checking out new builds in and around our area.
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