10/29/2026
Rates dipped back under 7.5% — the 30-year fixed is averaging 7.31% this morning (Bankrate, Oct 29). And if you're waiting for rates to fall a lot further, Fannie Mae's latest forecast says don't hold your breath: they expect 7.5% through all of 2027. The Fed held rates again yesterday, too.
So here's what buyers around here are actually doing instead of sitting out.
First, the seller-paid 2-1 buydown. The seller funds a lower rate for you — 2% below the note rate in year one, 1% below in year two. On a $350,000 loan at today's 7.31%, that's roughly $1,946 a month the first year and $2,169 the second, instead of $2,402 — and the seller covers the roughly $8,270 difference as a closing concession, not you.
Second, the 7/6 ARM. It's fixed for seven years, then adjusts, and it's averaging about 6.7% right now versus 7.31% fixed — roughly $144 a month less on that same $350,000 loan. And buyers are already moving on this — ARM applications just hit 11.3% of all mortgage applications, their highest share in over a year (MBA). It only makes sense if you'll sell or refinance before year seven, and you have to respect the reset risk: if your budget only works at the starter rate, take the fixed.
Third — and sellers, this one's for you — negotiate the concession instead of the price cut. A buydown can cost you less than dropping the price, and right now it's what gets the offer in a market where homes are sitting longer.
I'm not a lender, so talk to yours about which of these fits your timeline. But don't let the rate be the reason you sit out another year.
Thinking of selling? Ask me what your home is worth — no pitch, just a number.
Call John Russo at (530) 532-9900. Go West Realty. Let's find your perfect place.
