How To Afford a Home Even With Fluctuating Rates

By Tammy Jerome

Tammy Jerome is an award-winning broker and host of “Selling Los Angeles” on the acclaimed American Dream TV show, with over two decades of experience and more than 1,500 successful transactions.

If you’ve been keeping an eye on mortgage rates lately, you’ve probably noticed a familiar pattern: a small jump one week, a slight dip the next. It’s a rollercoaster, and it’s making a lot of buyers second-guess every move. I’ve had clients who waited for “the perfect moment,” only to watch rates shift overnight and miss out on homes they could have easily afforded just weeks before. If that sounds like you, it might be time to stop waiting and start planning.

Why do mortgage rates keep moving? Mortgage rates don’t move randomly. They’re influenced by factors such as inflation, job reports, and developments in the broader economy. Currently, inflation concerns—especially those tied to tariffs—are causing considerable uncertainty. If you’re hoping for a significant drop in rates, that’s unlikely to happen anytime soon. Meanwhile, home prices continue to rise, adding more pressure.

How can you lower your rate? Here are three ways:

1. Temporary buy-down. One great option that many buyers overlook is a temporary buy-down. With this, the seller pays a fee that lowers your mortgage rate for the first one to three years. That means lower monthly payments while you get settled. After that, the rate goes back to the standard level, but you’ve had some breathing room in the meantime.

2. Rate lock programs. Some lenders also offer rate lock programs that let you lock in today’s rate and adjust it later if the market improves. It’s a smart way to move forward without waiting in limbo.

3. Refinancing. Waiting for a lower rate might seem like a smart move, but in this market, it could price you out of the home you really want. Even if rates do fall later, refinancing can still help you take advantage of that down the road.

Don’t wait for rates to lower. Every month you wait could mean losing buying power. When you get preapproved now, you know exactly what your budget is, and you can move quickly when the right home comes along.

The perfect timing may never come, but the right plan can. The truth is, the market isn’t going to hand you a perfect window. But with the right strategy, you can buy now with confidence and flexibility.

Let’s talk about what makes sense for your situation. Call me at 818-903-5854, email tammyjerome@gmail.com, or visit tammyjerome.com. I’ll help you find the right path forward, without the guesswork.