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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Home Projects That Boost Value

By KCM • June 14, 2025
Home Projects That Boost Value Whether you’re planning to move soon or not, it’s smart to be strategic about which home projects you take on. Your time, energy, and money matter – and not all upgrades offer the payoff you might expect. As U.S. News Real Estate explains: ". . . not every home renovation project will increase the resale value of a home. Before you invest in a swimming pool or new addition, you should consider whether the project will pay itself off by getting prospective buyers in the door when it’s time to sell. " That’s why, before you pick up a power tool or call a contractor, your first step should be talking to a local agent. Planning Ahead Pays Off If you plan to move relatively soon, you’ll want to get a jump start on your to-do list. And even if moving isn’t on your radar yet, life can change quickly – and a new job, a growing family, or shifting priorities can fast-track your plans. You don’t want to be scrambling to fix up your home if your timeline changes. Smart updates now = fewer headaches later. By planning ahead, you can spread out the work over time, which is easier on your wallet and your stress levels. Plus, you’ll get to enjoy the upgrades while you’re still living there and have the peace of mind your house is ready to impress when it's time to list. What Buyers Want (and What’s Actually Worth Doing) If you’re not sure which projects are worth your time and money – here's some information that can help. A study from the National Association of Realtors (NAR) shows which upgrades typically offer the best return on your investment (ROI) (see graph below): If an update you're already thinking about overlaps with those high-ROI upgrades, great. Odds are it'll improve your quality of life now and your home’s value later. But don’t take this list as law. This is based on national data and is the sort of thing that's going to vary based on what’s most sought-after where you live. That’s where your agent comes in. As an article from Ramsey Solutions says: “ The best way to gauge what you can expect in terms of resale value on home improvements—especially if you’re planning to sell soon—is to talk to a real estate agent who is an expert in your market. They’re sure to know the local trends, and they can show you how other homes with the features you want to add are selling. That way, you can make an educated decision before you start ordering lumber and knocking down walls.” You'll just want to make sure you don't overdo it. Too many high-end updates can make your home the priciest in the neighborhood. That might sound great, but it can actually turn buyers away if it's outside their expected price range for the area. The right agent will help you make smart updates that buyers will love, without going overboard. Whether the project is big or small, it pays to be strategic. And an agent is a key piece of that strategy. Bottom Line It doesn’t matter whether you plan to move soon or not, it can still pay off to make strategic updates that’ll help you love your home now and stand out later. What’s one upgrade you’ve been thinking about – and wondering if it’s worth it? Let’s make sure it’ll pay off when the time comes.

Why You’ll Want a Home Inspection

By KCM • June 13, 2025
Once your offer is accepted, an inspector will assess the condition of the house, including things like the roof, foundation, plumbing, and more. That information is incredibly important and paves the way for you to re-negotiate with the seller, as needed. So, you don’t want to skip this step. An inspection is your chance to avoid costly headaches and get peace of mind. Let’s connect to talk about other ways to make your offer stand out.

Housing Market Forecasts for the Second Half of the Year

By KCM • June 12, 2025
Housing Market Forecasts for the Second Half of the Year From rising home prices to mortgage rate swings, the housing market has left a lot of people wondering what’s next – and whether now is really the right time to move. There is one place you can turn to for answers you want the most. And that’s the experts. Leading housing experts are starting to release their projections for the rest of the year. These insights will give you clarity – and a little more optimism than you might expect. Business Insider sums up the forecasts (and why they’re good news for you): “As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.” Let’s break it down. 1. Mortgage Rates Should Come Down (Slightly) While a major drop isn’t on the table, forecasters are calling for a modest decline in rates in the months ahead as the economic outlook becomes more certain. Based on the information we have right now, here’s a look at where they say rates should be by year-end (see graph below): Even this slight decrease is a welcome change. A seemingly small decline can still help bring down your future mortgage payment and give you a bit more breathing room in your budget. Just remember, everything from inflation to employment and broader economic shifts will have an impact on where rates go from here. So, don’t try to time the market. And do expect some volatility along the way. 2. Inventory Will Continue To Grow Inventory has already improved a lot this year. A big portion of the growth the market has already seen is because homeowners are getting tired of sitting on the sidelines. They’ve tried the wait and see approach with rates, and it hasn’t really paid off. And at a certain point, you need to move no matter what the market is doing. This is one reason more homes have been listed lately. And experts say that should continue. As Lance Lambert, Co-founder of ResiClub, says: “The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher. ” If rate forecasts pan out as the experts say, that could be enough to tip some more sellers off the fence and back into the market – giving you even more options for your move. 3. Home Prices Are Moderating As more homes hit the market, there will also be less upward pressure on home prices . Expert forecasts are still calling for growth, but the pace of that growth is slowing down as inventory climbs. The average of all 7 forecasts shows prices will rise about 2% this year (see graph below): That means you could finally get a little bit of relief from rapidly rising home prices . When you combine the forecast for healthier price growth with projections for slightly lower mortgage rates, that could mean more buying power in the months ahead. Keep in mind, though, the housing market is hyper-local. So, this is going to vary by area. Some markets will see prices climbing higher. And some may even see prices dip a little if inventory is up significantly in that location. So, lean on a local agent for insights into what’s happening in your area. Bottom Line So, if you want or need to move this year, know that the experts say things should start looking up. Let’s connect so you can take advantage of any market shifts that work in your favor.
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