Navigating Interest Rate Changes: What Buyers Should Do Right Now
Interest rates have remained in the mid to high 6% range in recent months, and while they’ve dipped slightly from earlier highs, they’re still significantly above the historic lows buyers saw just a couple of years ago. For those looking to purchase a home, especially in Alabama, it’s natural to feel uncertain about how to move forward in this new rate environment.
At Embry Group Real Estate, we’re helping buyers adjust their strategy to stay competitive and make smart decisions—regardless of where rates land.
1. Get Pre-Approved—and Consider Buying Down Your Rate
Pre-approval is more than just a formality—it’s your first step toward homeownership. It lets sellers know you’re serious and gives you a clear picture of what you can afford.
If you’re worried about the monthly payment, ask your lender about buying points to lower your interest rate. This strategy can reduce your long-term costs and make a significant difference in affordability.
2. Explore Adjustable-Rate Mortgages (ARMs)
In some cases, adjustable-rate mortgages (ARMs) can offer lower initial interest rates than traditional fixed-rate loans. If you plan to move or refinance within five to seven years, an ARM could be a smart financial move—just be sure you understand when and how the rate could adjust later.
3. Be Strategic About Locking Your Rate
With rates fluctuating weekly, locking in a mortgage rate at the right time can save you money. If you’re under contract and closing within 30 to 60 days, ask your lender about current lock options. Some lenders even offer a one-time “float-down” if rates drop before you close.
4. Focus on Long-Term Value
Trying to time the market perfectly can lead to missed opportunities. Even with higher rates, home values in Alabama are projected to continue rising. If you find a home that fits your lifestyle and budget, it’s often better to act now and refinance later if rates improve.
5. Compare Lender Offers
Not all mortgage lenders are the same—rates, fees, and incentives can vary widely. Some lenders may offer rate buy-downs, closing cost credits, or flexible loan programs that work better for your situation. Get multiple quotes and compare.
6. Keep Your Financial House in Order
To get the best interest rate possible, make sure your credit score is strong, your debt is manageable, and you have a solid down payment saved. Government-backed loan programs like FHA or VA loans can also help buyers who don’t fit the conventional mold.
7. Focus on What You Can Control
You can’t control the market—but you can control your preparation. Stay focused on what matters:
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Knowing your budget
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Getting pre-approved
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Understanding the full cost of homeownership
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Being ready to act quickly when the right home becomes available
Final Thoughts
While we may not see interest rates return to the historic lows of a few years ago, today’s rates are still manageable—especially if you’re financially prepared and working with the right team.
At Embry Group Real Estate, we help you navigate the home-buying process confidently in any market. We’ll connect you with experienced lenders, break down your options, and guide you toward a smart, sustainable investment in your future.
Let’s talk about your buying goals and build a custom strategy that fits today’s market. Reach out to us today to get started.