How Can Homebuyers Deal With Higher Interest Rates?

By Mark Callender

Hello, my name is Mark Callender and I am a licensed real estate agent with RE/MAX Results. Because I have been helping families buy and sell their homes for more than 18 years, I am now helping their children to buy their first homes and their parents to downsize. No matter the direction you’re moving, my goal is to make the process as calm and enjoyable as it can be.

Are you a first-time homebuyer? If you’re a first-time homebuyer feeling discouraged by the news or opinions from friends and family, know that you have options. Today, I’m going to discuss why some buyers are discouraged by our market and what you can do to navigate it.

Now, let’s talk about interest rates. Currently, rates are around 7.25% in the Twin Cities for those with good credit and a solid down payment. But did you know about the numerous first-time homebuyer programs available? Many overlook these until they consult an experienced agent or a knowledgeable loan officer who can highlight the perks of being a first-time buyer.

Next, consider expanding your search area if you’re struggling to find suitable homes in your preferred location. While it may mean a longer commute, widening your search radius can open up more options and increase your chances of finding your dream home.

Another strategy to explore is joint ownership. I personally employed this method when purchasing my first home years ago during a time of high interest rates. By pooling resources with a trusted friend, we could afford the home despite the challenging market conditions. It’s a viable option worth considering, especially when balancing out high interest rates with lower property prices.

Additionally, explore rate buydowns, a negotiation strategy where sellers contribute to reducing the interest rate, making homeownership more affordable.

I know this can be a confusing topic, so please call or email me if you have questions. I look forward to hearing from you!