DENVER, CO — A homeowner who moved from just outside Denver says leaving a 2.8% mortgage behind for a new loan at 6.99% was easier to justify once the couple started shopping in a high-rate market. The move came as 30-year fixed mortgage rates were running at 6.75% for the week of Aug. 25, 2026, according to Bankrate, after a 2026 low of 6.17% in February.
The buyer said the higher borrowing cost was offset by weaker competition, more room to negotiate, and the chance to refinance later if rates improve. In the story, the homebuyer describes buying in 2024, then refinancing twice since the purchase. The couple also negotiated a one-year interest-rate buydown that cut the first-year rate by a full percentage point, to 5.99%.
What The Numbers Show
The account centers on one household, but it ties into a broader housing environment where buyers are facing elevated borrowing costs and a less frantic market than during the pandemic-era rate lows. The homeowner said the couple did not get into a bidding war, even though the home had a 425-square-foot cottage in the backyard, a backyard bar, and a basement sauna.
Bill Ryze, a certified Chartered Financial Consultant and board advisor at Fiona.com, said higher rates can make buyers hesitate, which can lower competition and give buyers more leverage. Jessica Majeski, a certified financial planner at Northwestern Mutual, said even a 1 percentage-point increase in interest rates can add a few hundred dollars to a monthly payment. Bankrate’s national figures show rates remain well above the unusually low levels of 2021.
Why They Bought Anyway
The couple decided against keeping one starter home as a rental, even though some mortgage experts might have recommended it. Instead, they chose to use the equity from both homes to make their next mortgage more manageable. The buyer said she did not want to become a landlord for her first home, which carried emotional value as well as financial value.
The story also points to builder and seller incentives as part of the current market. The couple worked with a realtor to secure another rate buydown from builders. The buyer said similar buydowns can also be negotiated with sellers, and that a 3-2-1 buydown can lower the interest rate by three points in year one, two points in year two, and one point in year three before it returns to the market rate.
What Buyers Should Watch
The main takeaway from the homeowner’s experience is not that higher rates are pleasant, but that they can change the math in ways some buyers value. The buyer said homes saved on Zillow were showing price cuts the longer they stayed listed, which can create openings that do not exist when bidding is intense. She also said future rate drops may help, but her household budget is built around the rate they locked in now.
Majeski said buyers should leave room for maintenance, taxes, and insurance, and should pay attention to private mortgage insurance if they cannot put down at least 20%. She also noted that larger down payments can sometimes help with rates. For readers checking the market themselves, Bankrate tracks weekly mortgage rates, while local listings and lender quotes can show whether sellers or builders are offering buydowns or other incentives.
More on what homes, rents and new builds are doing near you, on RHS Commoner.
