Photo credit to BSHH
On February 26, 2026, just before Trump launched attacks on Iran, interest and mortgage rates stood at 5.98%. Following a spring and summer of war, they climbed to 7.03% as of September 24. Not to mention gas prices, diesel prices, and everyday prices. Let’s focus on mortgage rates for now.
I have been in the real estate industry since 1991, and the truth is the real estate market for the middle- or entry-level price point has been stagnant since the Covid hype ended. And that is for several reasons.
So the 1st question that comes to mind for most consumers who played the waiting game for rates to come down: was it worth it? It was a gamble, and sometimes gambling goes your way and sometimes it doesn’t. For the consumers that needed to buy at a certain time for obvious reasons:
-Job security
-Family growing
-Relocation
In those cases, the gambling was not worth the gamble. Moving forward, is a 7% interest rate the end of the world? Let’s examine that:
A homeowner purchasing a $300,000 home will now pay $200 more per month than they would have in February as interest and mortgage rates climb back above 7%, spurred by inflation, war, etc. The question is, is the $300 dollars going to break the bank account? Only the home buyer can answer that.
What happens due to media hysteria is the panic button gets turned on without enough information. Yes, an increase in mortgage rates plus food costs, gasoline costs, and everything else sounds daunting, especially for middle-price-point and first-time buyers.
It is always best to look at all the facts and the numbers with a professional and make a smart decision. As the old saying goes, nothing lasts forever, and what goes up must come down—and that is true for interest rates.