Kelly McLaren Real Estate Group + Locke Your Loan

Buying in
Today’s Market

You do not have to love today’s interest rates to make a smart real estate decision. You need to understand the numbers and have the right strategy.

Buyer Market Strategy • September 2026

01
The Market

Rates moved fast.

This is why buyers who are watching mortgage rates every day can feel like the ground is moving underneath them.

September 22, 2026
7.17%
Mortgage News Daily 30-year fixed index
→
September 29, 2026
7.58%
Mortgage News Daily 30-year fixed index
That is a .41% movement in one week. Trying to perfectly time a mortgage market that can move this quickly is difficult.
02
Why Buyers Get Confused

“I saw rates were 7%.
Why am I hearing 7.5%?”

Mortgage News Daily

7.58%

Daily index as of September 29, 2026.

Freddie Mac

7.03%

Weekly survey as of September 24, 2026.

They are measuring the market differently and at different times. Your actual mortgage rate also depends on your loan and your individual situation.

03
Change the Question

The question is not just:
“What is the rate?”

The better question is:

“What does it cost me to own this particular home?”

01

Price

02

Payment

03

Cash

04

Strategy

04
Buyer Objection

“I’m just going to wait until rates come down.”

Waiting may be the right decision. But first, let’s get clear on what you are waiting for.

Buy Today

Known numbers

Purchase price
Payment
Negotiated concessions
Cash to close
Available inventory

Wait

Future unknowns

Future rate
Future price
Future competition
Future inventory
Additional rent while waiting

We do not need to guess. We can compare the numbers we know today against the assumptions required to make waiting work.
05
Where Strategy Begins

Higher rates create a problem.

They can also change the negotiating environment.

Seller concessions

Use available concessions strategically when permitted.

Temporary buydowns

Reduce the buyer’s initial payment for a defined period.

Permanent buydowns

Compare cost, monthly savings and break-even.

Offer structure

Look beyond price alone to the complete financial result.

06
Strategy #1

Use a 2-1 temporary buydown.

Instead of reducing the contract price dollar-for-dollar, available seller concessions may be used to reduce the buyer’s payment during the first two years when the loan and transaction qualify.

Year 1
-2%
Payment calculated 2 percentage points below the note rate.
Year 2
-1%
Payment calculated 1 percentage point below the note rate.
Year 3+
Note Rate
Regular principal and interest payment.
The buyer still qualifies using the required qualifying payment, not the temporarily reduced payment.
07
Strategy #1 • Show Me the Numbers

$800,000 purchase price.

5% down $760,000 loan 30-year fixed example 7.75% note-rate example
Year 1 • 5.75%
$4,435
Approx. monthly P&I
Year 2 • 6.75%
$4,929
Approx. monthly P&I
Year 3+ • 7.75%
$5,445
Approx. monthly P&I
Year 1 Payment Relief

≈ $1,010/month

Total 2-1 Subsidy

≈ $18,300

Principal and interest only. Taxes, insurance, mortgage insurance and other housing expenses are not included. Example is educational and is not a rate quote.

08
Strategy #2

Six-month payment relief.

Sometimes a buyer does not need two years of assistance. They simply want some breathing room after closing.

Move-in expenses

There is almost always something to buy once you get the keys.

Furniture

Preserve some monthly cash flow during the first six months.

Improvements

Create room in the budget for the things the buyer wants to change.

Adjustment period

Step into the new housing payment instead of absorbing the full change on day one.

09
Strategy #2 • Show Me the Numbers

What does six months actually save?

$800,000 purchase 5% down $760,000 loan
Normal P&I • 7.75%
$5,444.73
Approximate monthly principal & interest
First 6 Months • 7.25%
$5,184.54
Payment calculated using the temporarily reduced rate
Monthly Relief

$260.19

6-Month Subsidy

$1,561.16

Sometimes the smartest use of a concession is putting money exactly where the buyer feels it most.

P&I only. Example does not include taxes, insurance or mortgage insurance.

10
Strategy #3

Permanently buy down the rate.

A lower rate can be valuable. But paying points only makes sense when the math makes sense.

Step 1

Cost

What does the lower rate actually cost today?
Step 2

Savings

How much does it reduce the monthly payment?
Step 3

Break-even

How long before the savings recover the cost?
Lower is not automatically better. I want to know what we paid to get there.
11
Strategy #3 • Show Me the Numbers

Payment difference first. Pricing second.

$760,000 loan 30 years P&I only
7.75%
$5,444.73
Monthly P&I
7.25%
$5,184.54
Monthly P&I
Monthly Difference

$260.19

Break-Even Formula

Rate Cost ÷ $260.19

Now we pull the live pricing. If the cost does not make sense for the buyer’s expected timeline, we look at another option.
12
Strategy #4

Ask the seller to help solve the payment.

Buyers tend to think about negotiation as one thing: “How much can we get off the price?”

Sometimes the better question is: “How can we use the seller’s dollars to create the biggest impact?”

13
Strategy #4 • Show Me the Numbers

What could a $20,000 concession do?

$800,000 price 5% down $760,000 loan 7.75% note-rate example
2-1 Buydown Subsidy
$18,299.60
Approximate subsidy required for this example
Remaining From $20,000
$1,700.40
Potentially available toward other eligible costs, subject to loan guidelines
Instead of seeing $20,000 as “just a credit,” we give every dollar a job.
14
Strategy #5

Do not automatically put every dollar into the down payment.

More down payment reduces the loan amount. But that does not automatically mean it creates the strongest overall financial result.

More down

Smaller loan balance and potentially lower mortgage insurance.

Rate strategy

Use available funds to evaluate payment reduction instead.

Keep reserves

Homeownership comes with expenses after closing.

Compare the math

There is no universal answer. We model the options.

15
Strategy #5 • Show Me the Numbers

What does another $40,000 down actually change?

Option Down Payment Loan Rate Example P&I
5% Down $40,000 $760,000 7.75% $5,444.73
10% Down $80,000 $720,000 7.75% $5,158.17
Additional Cash

$40,000

P&I Difference

$286.56/month

Then we ask: Is reducing P&I by $286.56 the best job for that additional $40,000?

This comparison does not include mortgage insurance differences, taxes, insurance or potential loan-pricing changes.

16
Strategy #6

Choose your interest rate.

There is rarely one mortgage rate. There is usually a range of rates with different costs.

I want the buyer to see the trade-off instead of being handed one number.

17
Strategy #6 • Show Me the Numbers

Choose Your Interest Rate

$760,000 loan 30-year term Illustrative payment comparison
Rate P&I Rate Cost Monthly Difference vs 7.75%
6.875% $4,992.66 Live pricing $452.07
7.000% $5,056.30 Live pricing $388.43
7.125% $5,120.26 Live pricing $324.47
7.250% $5,184.54 Live pricing $260.19
7.375% $5,249.13 Live pricing $195.60
7.500% $5,314.03 Live pricing $130.70
7.750% $5,444.73 Live pricing Baseline

Payment examples are for education only and are not an offer or rate quote. Actual available rates, points and pricing depend on current market and borrower-specific factors.

18
Strategy #7

Your first mortgage does not have to be your last mortgage.

Buying today does not mean keeping today’s mortgage forever.

But a future refinance should be treated as an opportunity, not the reason the home is affordable today.
Question 1

Does the payment work today?

Question 2

If the market improves later, does a refinance make financial sense?

19
Strategy #7 • Show Me the Numbers

What would a future opportunity look like?

Rate Example Approx. P&I Difference vs 7.75%
7.75% $5,444.73 Current example
7.00% $5,056.30 $388.43/mo
6.75% $4,929.35 $515.38/mo
6.50% $4,803.72 $641.01/mo
6.25% $4,679.45 $765.28/mo
A lower rate alone does not determine whether refinancing makes sense. We would compare the savings against the cost and the buyer’s expected timeline.

Hypothetical future-rate examples only. No prediction that these rates will become available.

20
Buyer Conversations

What do we say when buyers are afraid of the rate?

We do not argue with the fear.

We slow the decision down, separate the rate from the entire transaction, and give the buyer numbers they can evaluate.

21
Objection Handlers
“I’m waiting until rates come down.”
That may make sense. Before you decide, let’s figure out what the rate would actually need to be for waiting to improve your numbers, and then compare that against the home and negotiating opportunities available today.
“I don’t want a 7% mortgage.”
I understand. We cannot control the market rate, but we can control how we structure the transaction. Let’s look at the payment, seller concessions, rate options and down payment together before the rate makes the entire decision for you.
“The payment is too high.”
Then let’s break it apart. We can look at the price, rate, taxes, insurance, mortgage insurance, down payment and available concessions individually and see what is actually driving the number.
22
Objection Handlers
“I’ll just refinance when rates drop.”
I would not make the purchase depend on that. The payment should work for you today. If the market later gives you a meaningful refinance opportunity, then we can evaluate it.
“I’m afraid I’ll buy and rates will drop right after.”
That can happen. It can also move the other direction. Instead of trying to pick the exact bottom, let’s make sure the home and payment make sense with the information we have today.
“I’m waiting for prices to drop.”
Let’s look specifically at the homes you would actually buy. Kelly can show you what is happening in that part of the market, and I can compare the financing so you can see what waiting would need to accomplish financially.
23
The Game Plan

You do not have to time the market perfectly.

You need a plan for the market you are in.

Kelly McLaren Real Estate Group

The property + negotiation

Find the right home and structure the strongest real estate strategy.

Locke Your Loan

The mortgage + numbers

Build the financing strategy around the buyer’s goals, cash and payment.

Before a buyer decides today’s market does not work for them, let’s find out what the numbers actually say.

Educational presentation only. Loan programs, rates, costs and eligibility are subject to borrower qualification, property eligibility, program requirements and market conditions.

24
Notes
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