With mortgage rates holding above 7% and the market closely watching the Federal Reserve’s next steps, affordability remains top of mind for many buyers. Having spent decades guiding clients through both volatile and steady markets here in the San Ramon Valley, we understand how important it is to plan ahead. A recent study highlights the value of preparing for rate shifts—suggesting that buyers should factor in a potential half-point rate increase within three months, three-quarters within six months, and a full point within a year.
For those considering a later purchase, there can be strategic advantages: historically, homes have sold for about 5% less in early Q4 compared to late Q2, with fewer competing buyers and more time for negotiation. This aligns with what we've witnessed locally—when inventory rises, as it did recently with a five-month supply, buyers gain real leverage. That means more room to negotiate on price, closing costs, discount points, or even temporary rate buydowns.
While markets are currently pricing in further Fed tightening, the longer-term objective remains clear: bringing inflation under control to eventually ease borrowing costs. Drawing on our combined 60 years of experience and deep local expertise, we continue to help buyers navigate these challenges with confidence and clarity.
Leave a Reply