Mortgage Rates Hit 7%. My Advice? Stay Ready.

Mortgage rates have hit 7%.

That’s a scary headline.

And if you’ve been thinking about buying or selling a home, it would be easy to see that number and decide to put everything on hold.

I don’t think that’s necessarily the right move.

My advice to my clients right now is simple: stay ready.

Especially here in West Michigan.

Our market continues to be strong. We saw buyers competing in multiple-offer situations throughout the spring. Home prices have continued to rise, and we also have more inventory coming onto the market, giving buyers more choices than they’ve had in recent years. GRAR continues to report monthly activity across the Greater Grand Rapids market, with its latest statistics released in September.

So yes, rates matter. But they’re only one part of the equation.

Know your numbers.

A 7% mortgage changes a buyer’s monthly payment and purchasing power. That matters.

But so does the price of the home.

Your down payment.

Your equity.

The terms you can negotiate.

And what your next move actually costs.

The Wall Street Journal recently described the housing market as facing the reality of a 7% mortgage, which certainly makes for a dramatic headline. But people are still buying homes, and sellers are still selling them.

The difference is that strategy matters more now.

Buyers have something they haven’t had much of: options.

More inventory means buyers can be more selective.

Nationally, inventory has increased and buyers have gained more negotiating power. Redfin has also reported that a significant number of homes are selling below their original asking price.

That doesn’t mean the market is weak.

It means buyers are paying attention to value.

If you’re buying, know what monthly payment you’re comfortable with. Talk to a lender before you find the house. Understand what happens at different price points and whether seller concessions or a rate buydown could make sense.

Then know what would make you act.

The right neighborhood?

A certain type of house?

A home that has been sitting on the market long enough to create an opportunity?

You don't have to buy just because something is available.

You want to be ready when something worth buying becomes available.

Sellers need to be ready, too.

For sellers, more inventory means preparation and pricing matter.

Before you decide whether to sell, find out:

What could your home realistically sell for today?

What would you walk away with?

What should you do to the house before listing, and what should you skip?

What would your next move cost?

And what price would make a buyer choose your home over the competition?

A strong market doesn't mean every home automatically sells well.

The homes that are prepared well, marketed well and priced correctly have the advantage.

Ready is different from rushed.

This is probably the most important part.

Staying ready does not mean you have to move.

It means you understand your options before you need to make a decision.

If the right house comes on the market next week, you know whether the numbers work.

If selling your home would put you in a position to make the move you've been thinking about, you already know what that looks like.

And if the numbers don't make sense yet?

You wait.

But you wait with a plan.

If it feels too soon to get ready, that's usually when you should.

Rates will change. Inventory will change. The market will change.

Instead of trying to predict exactly what happens next, know your numbers and know what opportunity would make sense for you.

Stay ready.

You don't have to make a move.

You just want to be ready when the right one shows up.