If You Fear You Missed Out on the Low Mortgage Rates, Here Are Reasons to Be Glad You Did
The Lighter Side of Real Estate • October 20, 2022
Some people feel like they missed the opportunity of a lifetime to buy a house when rates were really low over the past couple of years. And with mortgage rates now in the 6-7% range, many buyers feel punished for waiting and regret not buying sooner.
Well, if you’ve been feeling that way, it may make you feel better to know that many people who did buy when rates were lower probably wish they could switch places with you.
According to this Yahoo article, three-quarters of the people who bought between 2021-2022 have regrets, such as:
- They didn’t have many houses to choose from
- Prices were constantly rising
- Paying over asking price
- There was extreme pressure to make quick decisions
- Not able to thoroughly research the house they were buying, or do inspections
So while lower mortgage rates may sound much more appealing, remember that they also played a large part in causing those (and other) issues for buyers.
4 Reasons Why Now May Be the Time for You to Buy
That said, now you not only have higher rates, but also inflation and a potential recession to factor into your decision whether or not to buy a house now. So no, it’s not a no-brainer, and you should be thinking before leaping into buying a house.
To that end, Apartment Therapy published an article citing the following four things as reasons for you to consider buying in the current market:
- Stability – Buying is a hedge against inflation, and stabilizes one of your largest monthly costs against rising rents and rates.
- You can refinance – Rates may be higher now, but you can capitalize on lower prices, more houses to choose from, and the ability to do your due diligence… and then refinance your mortgage when rates come down in the future.
- Ability to negotiate – Sellers haven’t had to bend on their price or terms over the past couple of years, but as the market shifts, you’re more likely to find a seller who is willing to negotiate.
- It could become harder to get a mortgage – Whether or not we’re currently in a recession is subject to debate. But when recessions happen, mortgage companies become more cautious and are likely to make it more difficult for you to get a mortgage.
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Mortgage Rates Just Saw Their Biggest Drop in a Year You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way. On Friday, September 5 th , the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year. What Sparked the Drop? According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker-than-expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result. Basically, we're seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down. Why Buyers Should Pay Attention Now But this isn’t just about one day of headlines or one report. It’s about what the drop means for you. This recent change saves you money when you buy a home. The chart below shows you an example of what a monthly mortgage payment (principal and interest) would be at 7% (where mortgage rates were in May) versus where rates roughly are now: Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings. How Long Will It Last? That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly. So, make sure you’re connected with a good agent and trusted lender. They’ll keep a close eye on inflation indicators, job market updates, and reactions to upcoming Fed policy to gauge where mortgage rates may go from here. But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says: “Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” And that’s gives you more reason to hope than you've had in quite some time. Bottom Line This is the shift you’ve been waiting for. Mortgage rates just saw their biggest decline in over a year. And if rates stay near this level, it could make a home you couldn’t afford just a few months ago feel possible again. What would today’s rates save you on your future monthly payment? Let’s connect so you can find out.
Should You Still Expect a Bidding War? If you’re still worried about having to deal with a bidding war when you buy a home, you may be able to let some of that fear go. While multiple-offer situations haven’t disappeared entirely, they’re not nearly as common as they used to be. In fact, a recent survey shows agents reported only 1 in 5 homes (20%) nationally received multiple offers in June 2025 . That’s down from nearly 1 in 3 (31%) just a year ago – and dramatically lower than in June 2023 (39%) (see graph below): This trend means you should face less competition when you buy. That gives you more time to make decisions and the ability to negotiate price or terms. It Still Depends on Where You’re Buying Of course, national trends don’t tell the full story. Local dynamics matter, a lot. This second graph uses survey data from John Burns Research & Consulting (JBREC) and Keeping Current Matters (KCM) to break things down by region to prove just how true that is. It shows, while the share of homes getting multiple offers has dropped pretty much everywhere, some areas are still seeing more offers than others: In the Northeast, 34% of homes (roughly 1 in 3) are still receiving multiple offers. That’s more than the national average. But in Southeast , that number drops to just 6%. What’s behind the difference? In general, the areas still seeing bidding wars tend to have lower-than-normal inventory . That imbalance between buyers and available homes keeps pressure on prices and competition. But markets with more listings are seeing conditions cool – and that means fewer bidding wars. Sellers Are More Flexible Than You Might Think Here’s another shift to show you just how much things have changed. According to a Redfin report, almost half of sellers are offering concessions, like covering their buyer’s closing costs or dropping their asking price to get their house sold. That’s a clear sign this isn’t the same ultra-competitive market we saw a few years ago. Back then, sellers rarely compromised. And buyers often waived their inspection or appraisal to try to make their offer stand out. Now, things are different. But again, how often this is happening is going to vary based on where you’re looking to buy. And that’s why you need a local agent’s expertise. Bottom Line If concerns about bidding wars have been holding you back, it may be time to take another look. Nationally, competition is down. In some markets, it’s down significantly. And with more sellers offering concessions, buyers today have more power and flexibility than they’ve had in a long time. Want to find out what the market looks like where you’re buying? Let’s connect.
