Many home buyers in Raleigh are still on the sidelines, waiting and hoping for mortgage rates to fall back to the historic lows of 3% we saw just a few years ago. But it’s important to understand that those ultra-low rates were a unique response to a global event—not the norm. And as the economy stabilizes, it’s time to reset expectations.
Why 3% Mortgage Rates Were Never Meant To Last
In 2020 and 2021, 3% mortgage rates gave Triangle Area home buyers incredible affordability and buying power. But those rates came from emergency economic policies designed to stimulate the market during the height of the pandemic.
Today, with the economy in a different place, mortgage rates have shifted. Right now, we’re seeing average rates in the high 6% to low 7% range. And while experts predict a possible slight decline later this year, most agree: we’re not going back to 3%.
What Experts Say About Where Rates Are Heading
Many industry forecasts suggest rates will gradually settle into the mid-6% range by the end of the year, assuming no major economic surprises. As Kara Ng, Senior Economist at Zillow, explains:
While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy.”
What Buyers Should Focus On Instead
If you’re waiting for rates to drop significantly, you may miss key opportunities in the meantime. Rather than delaying your Raleigh home search, focus on what you can control:
- Review your budget and determine what’s realistic now
- Strengthen your credit score to qualify for better loan terms
- Partner with a trusted Triangle Area real estate agent and lender who can guide you through today’s market
These professionals can help you explore down payment assistance, creative financing options, and ways to negotiate effectively to keep your purchase within reach.
Getting Ahead of the Market Could Pay Off
If mortgage rates do ease later this year, more buyers are expected to re-enter the market. That means competition will increase—and so could home prices.
As Realtor.com puts it:
Staying out of the market in hopes of a rate drop that never comes can lead to missed opportunities . . . Rising home prices, rent increases, and inflation might outpace any future savings on interest. And if rates do fall sharply again, buyers could face an entirely different challenge: surging competition.”
Bottom Line: Reset Expectations, Stay Informed
The 3% mortgage rates of the past were the exception, not the rule. Today’s rates are finding a new normal, and it’s wise to adjust your expectations accordingly.
A local real estate agent and a reliable lender can help you stay informed, understand your options, and create a plan that works—whether rates shift again or not. Contact Linda Craft Team Realtors to talk about what steps make sense for your goals today.