How Phoenix homebuyers can stay competitive and afford a home despite rising mortgage rates
As seen on 12News, August 2023.
Trevor Halpern Shares Strategies to Help Phoenix Homebuyers Stay Competitive Despite Higher Interest Rates
Rising mortgage rates have made buying a home more expensive, causing many buyers to reconsider their plans. With 30-year fixed mortgage rates hovering around 7%, affordability has become one of the biggest concerns in today’s housing market. However, according to Trevor Halpern, CEO of Halpern Residential, higher rates don’t necessarily mean buyers should put their homeownership goals on hold.
During his interview with 12News, Trevor explained that today’s market requires buyers to take a more strategic approach rather than stepping away altogether.
Higher Rates Mean Buyers Need to Reevaluate Their Budget
As mortgage rates increase, so do monthly payments. Trevor noted that buyers who were actively searching when rates were lower often slow down their home search once borrowing costs rise.
“When you see a higher interest rate, it means your monthly cost goes up, so you may have to re-budget and revisit your home search.“
Instead of abandoning the idea of buying, Trevor encourages buyers to adjust their expectations, understand their purchasing power, and explore financing options that can improve affordability.
There Are More Financing Solutions Than Many Buyers Realize
One of Trevor’s biggest takeaways is that buyers have access to several tools that can reduce the impact of higher interest rates.
He recommends asking questions such as:
- Can the seller contribute toward buying down the interest rate?
- Would making a larger down payment improve loan terms?
- Are there government-backed loan programs available?
- Can improving your credit score qualify you for a lower rate?
These strategies can significantly reduce monthly mortgage payments and make homeownership more attainable.
Seller Rate Buydowns Can Be a Powerful Negotiation Tool
One strategy Trevor highlighted is negotiating a mortgage rate buydown with the seller.
Rather than focusing solely on lowering the purchase price, buyers may benefit more from asking the seller to contribute toward reducing the mortgage interest rate. This can lower monthly payments during the early years of the loan—or even for the life of the mortgage, depending on the financing structure.
In today’s market, seller concessions have become an increasingly valuable way to improve affordability without sacrificing the right home.
Every Buyer’s Situation Is Different
Trevor emphasized that there isn’t a one-size-fits-all solution when it comes to buying a home in today’s market. A buyer’s income, savings, credit score, and long-term plans all play a role in determining the best financing strategy.
Rather than focusing only on today’s interest rate, Trevor encourages buyers to evaluate the bigger financial picture and work with experienced professionals who can identify creative financing options.
As he explained during the interview:
“There are a bunch of mechanisms and tools that we can use in this marketplace to help buyers compress their interest rate to keep affordability in the mix.“