Let’s cut through the noise. Everyone’s watching interest rates like it’s the stock market. Buyers are waiting for the “perfect time” to lock in a deal. Sellers are wondering if a price cut is their only move.
Here’s the truth: Both matter — but not in the way most people think.
💡 The Scenario
You’re eyeing a $400,000 home. Interest rates are hovering around 7%. You think, “Maybe I’ll wait for rates to drop.”
Or, you see a price reduction of $10,000 and wonder if it’s worth jumping on now.
Let’s break it down.
🔍 What a Rate Drop Does
If you buy at 7% interest, your monthly principal and interest (on $400,000) is about $2,660.
If that rate drops to 6.5%, the same home costs about $2,528 per month.
That’s a monthly savings of $132 — or $47,500 over a 30-year loan.
📉 What a Price Drop Does
Let’s say instead, the seller drops the price to $390,000, but the interest rate stays at 7%.
Now your monthly payment is $2,593 — about $67 less per month.
Over 30 years? That’s around $24,000 in savings.
🎯 The Real Point
✅ A rate drop impacts your long-term affordability more than a small price cut.
✅ A price drop might help with upfront costs (lower down payment, less closing costs).
But here’s the kicker: You can’t time both perfectly. And most buyers aren’t staying in homes for 30 years anymore.
💬 So What Should You Do?
Buy when it makes sense for your life — and negotiate smart.
If the house fits your budget, you can always refinance if rates drop.
If prices drop and inventory is low, jump on it — because competition will spike.
Need help running the numbers for your situation? That’s what we’re here for. No pressure, just straight-up advic
Let’s talk strategy.
📲 Call or text me anytime at 813-321-9149
📧 renee@spartangrouprealty.com
🛡 Spartan Group Realty — Veteran-Owned. Fiercely Dedicated. Real Results.
