Do Good Mortgage

Here’s the market update:

ICYMI, earlier this year, interest rates finally dropped below 6%…

and then the conflict in Iran started, and rates rose again. 📉

The average interest rate this week was 6.53%—which is higher than predicted, but still lower than last year (Freddie Mac). 📊

So with higher interest rates… have people stopped buying houses?

Nope.

In fact, pending home sales are up 10% year over year (Redfin). 📈

And have prices dropped?

Also no—prices are up 2.2% from last year (Redfin). 🏡

What will happen next?
The Fed is expected to hold rates where they are, but if the conflict comes to an end, we can expect rates to drop. Overall, home prices are expected to stay steady where they are. 🗺️

As we head into summer and fall, buyers will actually get more negotiating power. Here’s exactly what you can do to win in this market:

1️⃣ Look for properties on the market for 14+ days
That length of time signals that you have negotiating room. Besides the purchase price, there are key terms you can negotiate to lower your monthly exposure.

2️⃣ Negotiate interest rate buy-downs
You can ask the seller to credit you money to secure a lower interest rate, either via a temporary or permanent buy-down. A commonly negotiated option is the 2-1 buy-down, which drops your interest rate by 2% the first year, and 1% the second year. This is a massive strategy right now because it gives you immediate breathing room with the flexibility to refinance if rates drop later. 💡

3️⃣ Negotiate closing cost assistance
Instead of fighting for a lower purchase price, ask the seller to cover your closing costs. This rolls those upfront expenses into your mortgage, keeping more liquid cash in your pocket—perfect if you're buying a home that needs immediate updates or repairs. 🛠️

If your goal is to buy a house this year...

❌ DO NOT just wing the process—there’s way too much money at stake!
✅ INSTEAD, comment CLASS below to get access to my FREE Homebuying 101 class and build a real strategy. 🎓✨

Comment CLASS to join our free homebuying class and I’ll send you the details!

Here is the full breakdown without the fluff ⬇️⬇️

▪️ Negotiate stale listings: Price drops are possible if it's been on the market for 14+ days.
▪️ Request a home warranty: Ask the seller to cover your first year of repairs.
▪️ Skip a payment: Your first mortgage payment skips a month (e.g., close in Sept, pay in Nov).
▪️ Budget for inspections: A good inspector is $600, but set aside $1,000 just in case.
▪️ Homestead exemptions: Research state tax breaks for your primary residence.
▪️ You don't need 20% down: The average first-time buyer only puts down 7% to 9%.
▪️ Lender chats are free: It's the only way to find out exactly how much you can afford.
▪️ Do a night drive-by: Visit the neighborhood at different times to check the night vibe.
▪️ Look for grants: Almost every state offers some type of down payment assistance.
▪️ Winter discounts: Homes are generally priced lower during the winter months.
▪️ Shop rates safely: After pre-approval, you can pull multiple quotes within 14 days without hurting your credit.
▪️ Seller-paid closing costs: You can negotiate these, especially if the house has sat for over two weeks.
▪️ Check the roof's age: Knowing its lifespan can save you a surprise $30k replacement.
▪️ Don't rush: It takes 10 weeks on average to find the right house. Give yourself time.
▪️ Payments will change: Your monthly payment will fluctuate because property taxes and insurance increase.
▪️ The new homeowner haul: Budget $1,000+ for random store runs the week you move in.
▪️ Explore USDA loans: Buying rural? Check out their 0% down payment options.
▪️ The lowest score matters: Buying with a partner? Lenders use whoever has the lowest middle credit score.
▪️ Drop your PMI: Put down less than 20%? Call your bank to remove PMI once you hit 20% equity.
▪️ Set your own limits: You’ll get pre-approved for more than you should spend. Budget based on your actual take-home pay.

Comment CLASS to join our free homebuying class and I’ll send you the details!