Interest Rates Just Don't Matter if you NEED a home...

By Brent Bushong

Let’s be real—interest rates get all the attention. The moment they move a fraction of a percent, the headlines scream, social media explodes, and every armchair economist in the neighborhood suddenly has a hot take. But if you’re buying a home in Central Florida, here’s a little secret: interest rates might not be as big of a deal as you think, especially in a neutral market. What really matters? Purchase price. Let’s break it down.

The Obsession with Interest Rates

Interest rates are like gas prices. People love to complain about them, but at the end of the day, you still need to get where you're going. Sure, a lower interest rate can save you money over time, but the real question is: what are you actually paying for the house?

Consider this: in a market that’s neither hot nor cold (i.e., neutral), buyers actually have some negotiating power. This means you’re more likely to get a better deal on the home’s purchase price—whether through seller concessions, price reductions, or just avoiding a 10-way bidding war with people offering their firstborn child as part of the deal.

The Math: Why Purchase Price Matters More

Let’s say you’re eyeing a $400,000 home. Would you rather:

• Buy at $400,000 with a 6% interest rate

• Negotiate down to $380,000 with a 6.5% interest rate

Believe it or not, the lower purchase price often wins. A $20,000 reduction means lower property taxes, lower insurance, and—surprise—lower overall payments, even if the interest rate is slightly higher. Plus, you can always refinance if rates drop, but you can’t go back in time and ask the seller for a retroactive discount.

The Central Florida Factor

Why does this matter even more in Central Florida? Because home prices here are still relatively reasonable compared to other parts of the country (looking at you, California and New York). In a neutral market, sellers aren’t holding all the cards like they did in 2021-2022. That means buyers can be a little pickier and negotiate a better price—something that will save them more money over time than a 0.5% rate difference.

Bottom Line

Yes, interest rates matter, but don’t let them distract you from the bigger picture. In a neutral market, where buyers have some leverage, negotiating a lower purchase price can be far more beneficial than obsessing over small fluctuations in mortgage rates.

So the next time someone tells you, “But the interest rates are too high!” just smile and say, “Yeah, but I got a great deal on the house.” And if rates drop later? Well, that’s what refinancing is for.

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