Stop Waiting on Mortgage Rates

The Missed Opportunity

Back in 2019 and 2020, a client was eager to buy a new home in Arizona. At the time, interest rates were sitting around 2.99% on a 30-year fixed mortgage—paired with $15,000 in seller credit. In other words, it was practically free money.

The Buyer's response?

“We believe rates will be lower in the next few months.”

Rates didn’t drop—they climbed. First into the mid-4’s, then into the 6’s. Now, we're nearing the end of 2025, that buyer has still not purchased a home, and with today’s housing market, may never be able to.

6% Mortgage Rates have not changed

Fast forward to today. Since September 2022, interest rates have held steady, averaging around 6.29%. Despite market shifts, they’ve barely budged.

Here’s the truth: barring a major economic or global crisis, the days of 3% and 4% mortgage rates are gone. This is the new normal, and both buyers and sellers should adjust their expectations.

Affordability Isn’t Gone—You’re Just Looking in the Wrong Place

Too often, I hear: “We can’t afford a home.”

But that’s not true—how about looking in a nearby city? Or compromising on house for now vs a house forever.  A 20-minute drive or the elminiation of an extra bedroom or an extra garage can mean the difference between renting forever and building equity in your own home. Think about the equity this buyer could have gained in 5 years! But instead, they missed an opportunity.

And let’s face it—renting isn’t cheap either. Average Phoenix rents hover around $2,500 a month, with restrictions on pets, painting, and personalization. Buying—even if it means adjusting location—offers freedom and long-term financial growth.

Creative Solutions for Today’s Buyers

Even in a 6% market, there are ways to make homeownership achievable:

• Seller Concessions: More sellers are offering credits for closing costs or rate buy-downs.

• Rate Buy-Downs: Temporary or permanent buy-down programs can make monthly payments more affordable.

• Refinance Options: Rates may not hit 3% again, but refinancing later—even at a modest drop—can save thousands.

• Expanding Your Search: Exploring communities outside city centers often reveals more affordable homes without sacrificing quality of life.

  The bottom line? Chasing interest rates is a losing game. Affordable housing exists, but buyers must be willing to adapt. With the right strategy, you can:

  ✔️ Find affordable homes in Phoenix-area communities
  ✔️ Use seller concessions and rate buy-downs to your advantage
  ✔️ Escape rising rents and start building equity

  If you’re waiting for rates to drop back into the 3’s—you’ll be waiting forever. I don't want that for you.

  Ready to explore affordable housing options in the Phoenix metro? Let’s connect and build a homeownership strategy that works in today’s market.
  
  Jenna Sanchez, Realtor®
  @phoenixfamilyrealtor | Realty ONE Group
  Schedule a Consultation | Browse Homes