Fall is here, and the mortgage market looks different than it did at the start of the year. Whether you’re buying, downsizing, or thinking about tapping your home’s value, here’s a plain look at where things stand and what to do about it.
Interest Rates: Where Are We Now?
Rates have climbed this fall. The average 30-year fixed rate is now above 7%, the highest we’ve seen since early 2025, and about a full point higher than this time last year. That doesn’t mean you should wait on the sidelines. It means the loan structure matters more than ever. A 15-year loan, an adjustable rate, or a larger down payment can each make a real difference in your monthly payment. Rates also move week to week, so having someone watching them for you helps.
The Housing Market Outlook
Here’s the good news: buyers have more choices than they’ve had in years. More homes are for sale than a year ago, homes are sitting on the market a little longer, and price reductions are common. Prices have mostly held steady rather than shooting up. That gives buyers room to negotiate on price, repairs, or help with closing costs. Being pre-approved still puts you in the strongest spot when you find the right home.
If You Already Own a Home
If you locked in a low rate a few years ago, refinancing probably doesn’t make sense right now. But if you want to update your home, make it easier to stay in for the long run, or free up cash for a big life change, a home equity loan or line of credit may let you keep your low first mortgage in place. It’s worth a conversation before you decide.
Loan Programs and Help With Down Payments
Conventional, FHA, VA, and USDA loans each fit different situations. Here in North Carolina and in Virginia, there are also state programs that can help with down payment and closing costs for those who qualify. The right fit depends on your goals, not just your rate.
Credit and Affordability
Good credit still gets you the best terms. If you’re planning a move in the next year, keep paying on time, pay down balances where you can, and hold off on new car loans or credit cards until after closing.
Final Thoughts
Higher rates make planning more important, not less. Whether you’re ready now or looking ahead to 2027, I’m happy to walk through your options and help you find a plan that fits your life.
If you have questions or want to talk through your options, reach out here.
Judi