High mortgage rates don’t have to stop you from buying a home — they just mean you need a smarter strategy.
The 30-year fixed rate has hovered between 6% and 7% for most of the past two years. That’s not going back to 3% anytime soon. But buyers who waited for rates to drop missed out on equity, tax benefits, and the simple stability of owning. My team at Mortgage Investors Group works with buyers every day who are navigating this environment — and there are real, proven ways to make it work.
Here’s what I tell every buyer who walks through my door right now.
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Rate Buydowns: Pay Less Now (or Let the Builder Pay)
A rate buydown lets you — or a seller or builder — pay upfront to lower your interest rate for a set period or permanently. It’s one of the most powerful tools available to buyers in a high-rate market.
The most common option is a 2/1 buydown. Your rate is 2% lower in year one, 1% lower in year two, then settles at the full rate from year three on. On a $300,000 loan at 7%, a 2/1 buydown drops your first-year payment by nearly $386 a month — that’s real money you keep in your pocket while you settle into the home.
You can also do a permanent buydown by paying “points” at closing to reduce your rate for the life of the loan. Whether this makes sense depends on how long you plan to stay in the home. I can run the break-even math for your specific situation — most buyers are surprised by how quickly the savings add up.
Adjustable-Rate Mortgages: The Right Tool for the Right Buyer
ARMs have gotten a bad reputation, mostly from what happened in 2008. But today’s adjustable-rate mortgages are a completely different product — they come with caps on how much your rate can move, and they can offer meaningful savings for the right buyer.
A 7/1 ARM, for example, gives you a fixed rate for the first seven years. If you’re planning to move within that window — maybe you’re buying a starter home, or you know a job relocation is coming — why pay the premium for a 30-year fixed you’re never going to use?
ARMs typically come in at 0.5% to 1% below the 30-year fixed rate. On a $400,000 loan, that’s a savings of roughly $150–$250 per month. If your timeline lines up, it’s absolutely worth exploring.
Marry the House, Date the Rate
This is the line I come back to over and over, because it’s true: you can always refinance your rate, but you can’t go back and buy a home you missed.
Rates have moved dramatically in short windows before. The 30-year fixed averaged over 7% at the start of 2025 and dropped to around 6.15% by year’s end — nearly a full percentage point in 12 months. When rates drop, the buyers who already own can refinance and capture those savings. The buyers who were waiting? They’re competing all over again, often against higher prices.
Historically, the rule of thumb is to refinance when you can drop your rate by at least 1%. We’re seeing conditions right now where buyers who purchased in 2023 and 2024 are already eligible to explore a refi. The home they bought hasn’t gone anywhere — and neither has their equity.
The supply of homes on the market is still constrained in most markets. Prices haven’t collapsed while rates were high — if anything, the lack of inventory has kept values supported. Waiting for rates AND prices to align in your favor is a tough game to win.
Builder Incentives: This Is a Big Deal Right Now
New construction is one of the best-kept secrets in this rate environment. Builders want to move inventory, and they have tools to help you that a traditional seller simply doesn’t have.
Nearly 40% of new-home sales now include some form of rate buydown, according to Goldman Sachs research — and three out of four builders surveyed by John Burns Real Estate Consulting confirmed they are paying lenders directly to lower buyer rates. In many cases, 94% of those builder buydowns are on fixed-rate mortgages, meaning you lock in a lower rate for the entire loan term, not just a teaser period.
My team at MIG has built direct partnerships with builders across the Atlanta market and beyond. That means we know which communities are offering rate incentives, closing cost contributions, and upgraded packages — and we can help you stack those incentives on top of the best loan product for your situation. It’s a different experience than walking into a builder’s office alone and hoping for the best.
If you’re open to new construction, learn more about how we partner with builders to get our clients better deals.
Get Pre-Qualified Before You Do Anything Else
Pre-qualification is not just a formality — in today’s market, it’s a strategic move.
When you know exactly what you qualify for, you can shop with confidence, move fast when the right home shows up, and negotiate from a position of strength. Sellers and builders take pre-qualified buyers more seriously. In competitive situations, it can be the difference between getting the home and losing it.
At MIG, we can take pre-qualification a step further and submit your file to full underwriting with a TBD address — meaning your loan is essentially approved before you even find a property. That positions you to close in as little as 7–10 days, which is competitive with cash offers.
It costs nothing and takes about 5–7 minutes. Start your pre-qualification here and we’ll show you exactly what you’re working with based on today’s rates.
The Bottom Line on High Rates
The 30-year fixed averaged 6.62% for all of 2025. That’s not where any of us hoped we’d be. But people bought homes at 8%, 10%, even 16% rates in the 1980s and built real wealth doing it. The rate is one variable in a much bigger equation.
What matters more: Are you buying a home you can afford? Are you using the right loan product? Are you positioned to refinance if rates come down? If the answer to all three is yes, waiting doesn’t help you — it just costs you time and equity.
If you’re curious about investment properties with debt-service coverage ratio loans, that’s another path worth exploring — especially for buyers looking to build a portfolio without relying solely on personal income qualification.
My team is here to help you figure out the best path forward for your specific situation. Let’s talk.
Ready to see what you qualify for? Get pre-qualified today — it’s free, fast, and there’s no obligation.
Or apply here in just a few clicks!
Contact Information
Adam Buice
Loan Officer NMLS #1619090 MIG NMLS #34391
404-416-6380
[email protected]
www.AdamBuice.com