Bargain Hunting With Rates Above 7%

With mortgage rates still hovering above 7%, affordability is front and center for North Jersey buyers mapping out their next move. As someone who’s helped clients navigate every kind of market in Passaic, Bergen, Morris, Hudson, and Essex Counties, I know how important it is to plan strategically—especially when borrowing costs are high and the Fed is keeping everyone on their toes. Recent studies show that buyers who prepare for possible rate shifts—think a half-point change in 3 months, three-quarters in 6, and a full point by year’s end—are often better positioned when the right home comes along. Interestingly, those who bought later in the year typically found homes about 5% less expensive in early Q4 than in late Q2, with fewer bidding wars and more space to negotiate on price, closing costs, or even temporary rate buydowns. With a five-month inventory recently, buyers have seen stronger bargaining power. While the market is still responding to further Fed tightening, the hope is that easing inflation will eventually bring some relief on mortgage rates. No matter your timing, a well-thought-out plan and local insight can make all the difference in finding the right opportunity.