Buyer’s Guide: What lesson can we learn from the drop and subsequent resurgence of mortgage rates below and above 6% last week?

By now, you’ve seen the headlines reporting the interest rates are back up above 6% after a week flying too close to the sun in the 5’s for the first time since 2022. I won’t summize what you’ve already read through in your news outlets. I will, however, offer my brief takeaway as a real estate professional guiding buyers through this market. 

While my opinion is nothing groundbreaking, it does bear repeating in a market such as real estate, where emotions are typically the decision-makers.

Not so dissimilar to the stock market, Interest rates are volatile and unpredictable. If you’re not comfortable taking risks with trades in your retirement account, do you really feel comfortable taking that risk on something that affects your every day life now, such as the home you could spend the next 5-30 years in? 

When you have a rate you are comfortable with as a buyer, have the lender lock it in. I would suggest you do not try to “time the market” and gamble with your rate. We have no idea where the market is going to land tomorrow, so make sure you’re protected with a rate and payment that works for you today.