How to Lock in Low Mortgage Rates Before the Buying Frenzy Hits
Friday, February 28, 2025
🚀 Mortgage Rates Are Finally Dropping – Here’s How to Win the Real Estate Game!
Hey friend,
It’s been four long years since we’ve seen mortgage rates move in the right direction. If you’ve been waiting on the sidelines, here’s your wake-up call – rates are finally dropping, and this could be your best shot at securing a lower payment!
The Good News: Rates Are on a Downward Trend 📉
​The 10-year Treasury yield just slid from 4.80% to 4.40%, and mortgage rates are following suit. If this continues, we could see rates dip below 6%, and that’s when things will get interesting.
Why This Is HUGE:
​Think of the housing market like a high-stakes game of musical chairs. Right now, there are still plenty of seats (and great deals), but as soon as rates drop below 6%, you can bet the music will speed up. Buyers are going to flood back in, and the competition will be fierce.
Here’s What’s Really Happening:
After six weeks of gains, the bond market is giving us some much-needed relief. We’re seeing a shift thanks to the upcoming PCE report (a key measure of inflation) that could signal even lower rates ahead. If the numbers come in as expected, the bond market should react positively, driving rates down further.
Why You Should Act Fast:
- More Buyers = Less Negotiating Power: If rates dip below 6%, you’ll see an influx of buyers who’ve been sitting on the sidelines for years. This will erode your ability to negotiate on price and seller concessions.
- Seller Incentives Could Disappear: Right now, sellers are still paying closing costs and offering buy-downs to make deals happen. But if the market heats up, these incentives could vanish faster than a TikTok trend.
Real Talk From a Client Meeting:
I recently helped a client looking at homes in the $269,000 - $280,000 range, and we explored two powerful strategies to get the best deal in this market:
1. Permanent Buy Down:
This is where either you or the seller pays extra upfront to lock in a lower interest rate for the life of the loan.
- Example: If the seller contributes $9,000, you could secure a rate as low as 5.625% – permanently.
- This would mean huge savings over the life of the loan, giving you stability and predictability in your payments.
2. Temporary Buy Down:
This option reduces your rate for the first 1-3 years, giving you breathing room until you can refinance at an even better rate.
- Year 1: 4.5%
- Year 2: 5.5%
- Year 3: 6.5%
This approach lets you ease into homeownership with lower initial payments while waiting for rates to drop even further.
The Catch? Timing Is Everything.
Rates are dropping now, but once they hit that magic number below 6%, the market is going to explode with activity. Buyers who’ve been waiting for years are going to rush in, and the deals we’re seeing today will be gone.
Fun Fact:
30-year mortgage rates peaked at 7.08% in 2022, but the historical average since 1971 is 7.73%. Right now, we’re sitting at 6.85%, which isn’t so bad when you look at the bigger picture. In other words, you’re getting a discount compared to historical norms!
Want to Beat the Rush?
Here’s how I can help you win in this market:
- Strategic Rate Buy-Downs: We’ll craft a custom strategy to maximize your savings and lock in the best rate.
- Negotiating Seller Concessions: I’ll work with your real estate agent to leverage current market conditions and get the seller to pay for your closing costs or rate buy-downs.
- Custom Payment Scenarios: Want to know what your payment would be on a specific house? Just send me the address, and I’ll create a tailored breakdown.
Ready to Take Advantage?
​Reply to this email or Schedule a call with me to see how you can make the most of this rare opportunity
Final Thought:
The housing market is like a game of chess – the winners are the ones who make the right move at the right time. If you’re thinking about buying or refinancing, now’s the time to act. Don’t wait until the competition heats up.
Let’s get you ahead of the curve,
Best regards,
Keith G.
