By Gene Griffin, Branch Manager, NMLS #2234848 ·
Don't wait on the rate. Work the deal. Combine down payment assistance (lender-sponsored, state and local, or profession-based programs), a seller-paid 2-1 temporary buydown and seller or builder concessions. Together they can turn a payment that didn't work into one that does, and a free refinance analysis keeps the door open if rates fall later.
The average 30-year rate was 7.24% this week, per Freddie Mac. That's a little better than last week and more than a full point higher than a year ago.
If you've been waiting for rates to fall before you buy, I get it. I've had that conversation with a lot of families this year. But the buyers I see winning right now stopped waiting on the rate and started working the deal.
There are more tools on the table than most people realize. Used together, they can close a big part of the gap a high rate creates. Here's what I'm putting to work for clients this fall.
Down payment assistance is real money, and most buyers skip it
Most of the buyers I talk to assume assistance is only for first-time buyers with low incomes. That's often not true, and there are more sources than people expect.
- Lender-sponsored programs. Through our lending partners, we have access to down payment assistance that isn't tied to any state agency. Depending on the program, it can cover part or all of the down payment, and some versions don't require you to be a first-time buyer.
- State and local housing agency programs. Nearly every state has a housing finance agency with its own grants or forgivable second loans, and many cities and counties add their own.
- Programs for specific professions. Teachers, first responders, healthcare workers and veterans often qualify for extra help. If that's you, tell me up front.
Each program has its own rules on income, price, credit and occupancy, and some carry a slightly higher rate in exchange for the help. Sometimes that trade is worth it and sometimes it isn't, which is exactly why we run them side by side for you.
A temporary buydown lowers the payment while you settle in
A 2-1 buydown drops your rate by 2% in the first year and 1% in the second. In year three you're at the full note rate. The cost is paid upfront, and in this market it's usually the seller or the builder paying it.
Two things I like about it. You still qualify at the full note rate, so you aren't stretching into a payment you can't carry later. And it gives you breathing room during the first couple of years, which is when furniture, fixes and surprises hit hardest.
Ask how unused buydown funds are handled if you refinance early. With many programs they're credited back toward your loan, but it depends on the program, so we'll confirm it before you sign anything.
In some neighborhoods, houses are on Black Friday sale
This is the part nobody is talking about. In a lot of markets, sellers are blinking first. Take Austin: as of October 1, more than 56% of active listings in the Austin MLS had already taken at least one price cut. In September, about 68% of sales closed below list price. In the City of Austin, homes sold for about 93% of their original asking price on average.
Wherever inventory is building like that, buyers have leverage they haven't had in years. That leverage doesn't have to come only as a lower price. Asking the seller to pay for a buydown or your closing costs can do more for your monthly payment than the same dollars knocked off the price.
Builders are in the same spot. Many are carrying finished inventory and offering rate incentives to move it. Compare those offers carefully, because the incentive sometimes comes with a higher price or a required lender.
The real win is stacking them
The strongest offers I'm writing right now combine these tools. A negotiated price, plus a seller credit pointed at a 2-1 buydown, plus down payment assistance when you qualify, can turn a payment that didn't work into one that does.
And if rates do come down later, you aren't locked out. Massif Mortgage Group offers a free refinance analysis anytime, so we'll keep an eye on it and tell you straight when a refinance makes sense and when it doesn't.
Stop waiting on the rate
Nobody can tell you when rates will move. What we can do is build the best deal available today and keep a plan ready for when they do.
If you're thinking about buying, or you know someone who is, send me a message or call me at (512) 517-9822. We'll lay out every option you qualify for, side by side, with no pressure and no obligation.
Questions readers ask
How are people buying homes when mortgage rates are high?
The buyers getting in are stacking tools instead of waiting for rates to drop: down payment assistance, a temporary buydown paid by the seller or builder, and negotiated seller credits toward closing costs. In markets where inventory is building, sellers and builders are more willing to pay for those concessions.
What is a 2-1 buydown?
A 2-1 buydown lowers your interest rate by 2% in the first year and 1% in the second, then you pay the full note rate from year three on. The cost is paid upfront, often by the seller or builder. You still qualify at the full note rate, so you aren't stretching into a payment you can't carry later.
Is down payment assistance only for first-time buyers?
Not always. Some lender-sponsored programs available through our lending partners don't require you to be a first-time buyer. State and local housing agencies run their own grants and forgivable second loans, and teachers, first responders, healthcare workers and veterans often qualify for extra help. Each program has its own income, price, credit and occupancy rules.
Is a seller credit better than a lower price?
Often, yes. Pointing seller dollars at a buydown or your closing costs can lower your monthly payment more than the same dollars taken off the price. Your advisor can run both versions side by side so you can see which one does more for you.
Sources
- Freddie Mac: Mortgage rates decline further to 7.24% (October 29, 2026)
- Team Price Real Estate: Austin housing market update (Austin-area MLS data) (October 1, 2026)
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Gene Griffin, NMLS #2234848 | Massif Mortgage Group, a DBA of Barrett Financial Group LLC, NMLS #181106 | Equal Housing Lender. This is general information, not a commitment to lend. All loans are subject to credit approval. Program availability, terms and eligibility vary and are subject to change. Market figures are as of the dates shown.