Home / Learning Center / Adjusting to Elevated Mortgage Rates: Homebuyers Navigate the New Normal

Adjusting to Elevated Mortgage Rates: Homebuyers Navigate the New Normal

Mortgage Professional America Magazine

Christopher Villarreal  3-MINUTE READ  January 28, 2025

Share:

Mortgage rates have surpassed 7%, reaching their highest levels since May. Despite this increase, consumers appear to be acclimating to the elevated rates. Darren Copeland, founder of Summit Lending, notes that many prospective homebuyers are proceeding with purchases, anticipating future opportunities to refinance when rates decline. He emphasizes the importance of educating clients about potential refinancing options down the line.

The National Association of Realtors reports that existing-home sales have declined to their lowest point since August 2010, with a seasonally adjusted annual rate of 3.78 million units. However, Chief Economist Lawrence Yun suggests that the market may soon rebound, especially with an expected increase in housing supply.

Copeland advises against waiting for rates to drop, as a decrease could lead to heightened competition and overbidding. He points out that purchasing now at a 7% rate, with the possibility of refinancing later, might be more advantageous than delaying and facing inflated home prices due to increased demand.

First-time buyers are encountering significant affordability challenges. Copeland observes that in regions like the Kansas/Missouri border, the cost difference between mortgage payments and rent has narrowed, making homeownership a more attractive option. He also notes a generational shift, with younger buyers often seeking homes comparable to their parents' current residences, rather than starting with more modest properties.


You might also like

30 year fixed rate mortgage rates 30 year mortgage rates calculate refinance calculating home equity loan calculating home mortgages loan current fixed mortgage rates current house mortgage rates current mortgage rates equity line of credit rates equity loan on house fha financing fha loans heloc home equity line of credit rates heloc loan rates heloc rates home equity home loan rates home equity lenders home equity line of credit rates home equity loan rates home line equity line of credit home loan mortgage rates home mortgage interest rates today homeowner line of credit interest rates today line of equity rates mortgage equity line of credit mortgage interest rates mortgage interest rates now mortgage interest rates today mortgage lending rates mortgage line of credit rates mortgage rates mortgage rates today refinance estimate va home Rate Low Mortgage Rates, Fast Service Affordable mortgage lenders near me Top-rated mortgage loan officer near me Best mortgage rates today Home loan pre-approval First-time homebuyer loan assistance Refinance mortgage rates Mortgage loans, First-time buyer, Cash out refinancing, Adjustable-rate mortgage, Refinancing, Fixed-rate mortgage Guaranteed Rate
Powered by
MOSO logo