10/05/2026
🔥 EVERYONE IS TALKING ABOUT TODAY’S HIGHER MORTGAGE RATES. But let’s talk about what buyers were doing just a few months ago.
Back in June, rates were around 6.54%, but buyers were still competing hard for certain homes.
Today, rates are around 7.57%, but many buyers have stepped back. That means more homes are sitting, bidding wars have cooled, and buyers may actually have negotiating power again.
So let’s do some REAL math.
🏡 Same $250,000 house.
30-year mortgage, 5% down. Principal and interest only.
EXAMPLE #1: $25,000 OVER ASKING
June
List price: $250,000
Buyer pays: $275,000
Rate: 6.54%
Mortgage payment: about $1,658/month
Today
Buyer pays: $250,000
Rate: 7.57%
Mortgage payment: about $1,672/month
😳 Difference: $14 A MONTH.
You paid $25,000 less for the house for roughly $14 more per month.
EXAMPLE #2: $40,000 OVER ASKING
June
Buyer pays: $290,000
Rate: 6.54%
Payment: about $1,749/month
Today
Buyer pays: $250,000
Rate: 7.57%
Payment: about $1,672/month
🔥 TODAY'S PAYMENT IS ABOUT $77 LESS PER MONTH.
And you paid $40,000 less for the house.
EXAMPLE #3: $50,000 OVER ASKING
June
Buyer pays: $300,000
Rate: 6.54%
Payment: about $1,809/month
Today
Buyer pays: $250,000
Rate: 7.57%
Payment: about $1,672/month
🔥 TODAY'S PAYMENT IS ABOUT $137 LESS PER MONTH.
And you paid $50,000 less for the house.
THIS is why I keep telling buyers:
STOP LOOKING AT INTEREST RATE ALONE.
A lower interest rate does not automatically mean you got the better deal.
A few months ago you might have had:
🔥 Multiple offers
🔥 Escalation clauses
🔥 $25K-$50K over asking
🔥 Limited seller concessions
🔥 Less negotiating power
Today you may have:
✅ Less competition
✅ A lower purchase price
✅ More negotiating power
✅ Seller-paid closing costs
✅ Inspection negotiations
✅ Potential rate-buydown concessions
And here's the biggest difference:
If rates come down later, you may be able to refinance your interest rate.
You can't refinance the extra $25,000, $40,000 or $50,000 you paid for the house.
I'm NOT saying today's rates are great.
I'm saying the entire deal matters, not just the number attached to the mortgage rate.
Sometimes the opportunity shows up when everybody else decides to sit on the sidelines. 👀🏡
Examples assume 5% down on a 30-year fixed mortgage. Payments shown are principal and interest only and do not include taxes, insurance, PMI, HOA fees or individual lender pricing.
