Mortgage rates have been on a wild tear recently, reaching 20-year highs topping 7% near the end of last year and bouncing around unpredictably ever since. And since even slight fluctuations in rates end up costing homebuyers hundreds of dollars a month, it’s understandable that many are paralyzed by indecision—should we buy or wait for rates to drop?—or else scrambling for any advice on how to stay ahead of the curve and keep their costs in check.
To help, we’ve compiled a few tactics we’ve heard from real estate experts and homebuyers on how to outsmart the turbulent tides of rising rates.
While some methods might strike some as unconventional, you may find that they’re becoming increasingly common in today’s unpredictable real estate market. If you’re tired of taking a wait-and-see stance or of simply sitting and praying for rates to head south, read on for some clever end runs, along with the pros and cons of these unusual approaches.
- Mortgage rate buy-downs
Mortgage rate buy-downs have attracted attention ever since rates shot up in mid-2022, and for good reason: They remain one of the easiest ways to make a dent in higher financing costs.