[petra303]

Why get out of a 3-4% loan just to get into a 7-8% loan?

[Esophagus4]

I think if you believed 7-8% loans were normal, you might be more likely to bite the bullet and make your move.

But if you believe 3-4% is normal, then you’re probably waiting for rates to return to “normal.”

I think it’s a side effect of years of low interest rates… people are conditioned now to believe low is normal, and they want to hang on until we get back to that.

I was hoping rates would stay “high” for a while which I thought would soften the housing market so I could buy, but that doesn’t seem to have happened. Instead of prices dropping, inventory just dried up.

Shows how silly I am for thinking I could time the market.

[hibikir]

It's the other way around. If you think 3% is normal, you buy now and refinance while people think that the house is unaffordable. Remember that lower interest rates make home prices go even higher!

If you think it will stay at 7%, that 3% loan you already have is a treasure to keep using for a decade or two.

[toomuchtodo]

Real estate market will soften as the economy comes off the rails [1]. 6-12 months from now should have more motivated sellers depending on market (foreclosures in Clark County Las Vegas market are up 32% year over year June 2025, for example [2]). Short sales and foreclosure auctions are also options. If you still want to buy down the road, be in the strongest financial position possible to get financing and make an offer when the market conditions turn more buyer favorable. Seller concessions can be used to buy down the mortgage rate, if that’s useful information.

[1] https://www.cnbc.com/2025/07/14/us-housing-markets-falling-p...

[2] https://news.ycombinator.com/item?id=44907838

[nunez]

I expressly waited for interest rates to jump before we bought ours. Buying couldn't have been easier because of that.

[SoftTalker]

7% is close to normal, historically. But not for the past couple of decades, so people forgot.

[kdamica]

I know that 3% interest rates are never coming back and that’s exactly why I’ll probably never move again.

[wakawaka28]

If you could get a lower price on the higher interest loan, you could pay it off early and save a lot of money. If you have a very high price with low interest, paying it off early has much less impact on the amount paid.

[DonsDiscountGas]

One could also rent the 3% loan at absurdly high prices. But that also requires the extra effort of being a land lord.