If you’ve been holding out on buying a home in Raleigh because you’re waiting for mortgage rates to drop, you’re not alone. But here’s the reality: experts predict rates will decline—just not as much as many buyers were hoping.
The good news? Even if rates stay higher than expected, there are creative ways to make homeownership in the Triangle Area more affordable right now.
How Much Will Rates Drop?
A few months ago, forecasts suggested mortgage rates could fall below 6% by the end of the year. But now, projections from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo show rates more likely to stabilize around 6.5% (see graph below):
That means if you’re waiting for a significant drop, you could be waiting a while. And if life events like a job change, a growing family, or a relocation mean you need to move sooner, waiting may not be practical.
Creative Financing Options in Today’s Market
Since lower rates may not arrive as quickly or dramatically as expected, it’s worth exploring alternative financing strategies that could help you buy a home in Raleigh sooner. Talk to local Triangle Area lenders about these three options:
1. Mortgage Buydowns
A mortgage buydown lets you pay an upfront cost to temporarily lower your mortgage rate, reducing your monthly payments in the first few years. It’s becoming more popular—27% of agents say first-time buyers are requesting buydowns from sellers to make deals happen.
2. Adjustable-Rate Mortgages
ARMs often start with a lower interest rate than traditional fixed-rate mortgages, making them appealing—especially if you plan to refinance in a few years or expect rates to drop.
If ARMs make you nervous, keep in mind that today’s versions are much safer than those from before the 2008 housing crisis. As Lance Lambert, Co-Founder of ResiClub, explains:
. . . ARM products today are different from many of the products issued in the mid-2000s. Before 2008, lenders often approved ARMs based on borrowers ability to pay the initial lower interest rates. And sometimes they didn’t even check that (remember Ninja loans). Today, adjustable-rate borrowers qualify based on their ability to cover a higher monthly payment, not just the initial lower payment.”
In short, lenders now do thorough checks—including income and employment verification—to protect both buyers and banks.
With an assumable mortgage, you take over the seller’s existing loan—and often, their much lower interest rate. According to U.S. News, over 11 million homes qualify, so it’s a smart option to look into if you want to lock in savings.
Bottom Line
If you’re waiting for a dramatic drop in mortgage rates, you could be missing out on opportunities. Instead, explore creative financing options like buydowns, ARMs, and assumable mortgages that can make buying a home in the Triangle Area more affordable today. Contact Linda Craft Team Realtors and find the best strategy for your situation.