Mortgage rates are going to be sticky. A good solution for buyers is to do a 2/1 buydown on their rate today. They get the benefit of lower-than-market rates for the next year or two while waiting to refinance once rates drop – and if they don’t drop, at least you get the 5.99% in this example:

A recent example: the buyer negotiated a $100,000 discount on a house priced in the $2 millions. Then he took a $60,000 discount on the price, and had the seller apply $40,000 towards a rate buydown to get a program similar to the one above!

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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