# Why 7% Mortgage rates are not the End of the World

By Evan Hankel (@evanhankel) · Published 2026-10-08

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# 7% Rates Suck. So Why Might This Still Be a Better Time to Buy?

Let’s just say it.

**7% mortgage rates suck.**

Nobody shopping for a home is excited about paying more interest than buyers did a few years ago. As of October 1, Freddie Mac reported the average 30-year fixed mortgage rate at **7.28%**.

So why would anyone say this could still be a good time to buy?

Because the mortgage rate is only one part of the transaction.

And right now in Southwest Florida, buyers have something they didn’t have during the frenzy of a few years ago:

**leverage.**

## Sellers Are Actually Negotiating Again

A few years ago, buyers were routinely competing against multiple offers, paying above asking price and sometimes giving up inspections or other protections just to get a contract accepted.

Today looks very different.

In September 2026, Lee County was considered a **buyer’s market**, with homes selling approximately **3.8% below asking price on average**. The median home spent about **95 days on the market**.

In Collier County, homes sold approximately **4.8% below asking price on average**, with a median of **106 days on market**. Collier County was also classified as a buyer’s market.

That means many sellers have had plenty of time to think about what they’re willing to do to get their home sold.

And that creates opportunity.

## The Price on Zillow Isn’t Necessarily the Price You Pay

In Lee County, Redfin recently reported a **95.9% sale-to-list ratio**, meaning homes were typically selling below their asking price. It also showed that **20.9% of homes had experienced a price drop**.

So when you see a home listed for $400,000, the conversation doesn’t necessarily end at $400,000.

Depending on the property and the seller’s motivation, you may be able to negotiate the price.

But that’s only the beginning.

You may also be able to negotiate seller-paid closing costs, prepaid expenses, repairs or money that can be applied toward reducing your mortgage rate.

That’s where today’s market can get interesting.

## A Seller Credit Can Sometimes Matter More Than a Price Reduction

Imagine a seller is willing to give you $10,000.

You could ask them to reduce the price by $10,000.

Or, depending on your loan program and situation, that money could potentially be used toward closing costs or an interest-rate buydown.

A $10,000 price reduction usually produces a relatively modest change in the monthly mortgage payment.

But using that same money strategically toward your financing can sometimes create a much bigger monthly benefit.

That is why buyers should stop looking only at the asking price.

The better question is:

**How can we structure the entire deal?**

## Higher Rates Can Mean Less Competition

This is the part that gets overlooked.

Higher mortgage rates hurt affordability.

But they also remove some buyers from the market.

Fewer buyers can mean:

-   fewer bidding wars
    
-   more time to make a decision
    
-   more price reductions
    
-   more negotiating power
    
-   more seller concessions
    
-   better opportunities to request repairs
    

In Lee County, the median listing price in September was approximately **$380,000, down 5.25% from a year earlier**. Homes were spending about 95 days on the market.

In Collier County, the median listing price was about **$685,000, down 2.17% year over year**, while homes were spending 106 days on the market.

Those numbers tell us sellers don’t necessarily hold all the cards anymore.

## What Happens If Rates Drop?

This is where waiting gets complicated.

A lot of buyers are thinking:

**“I’ll just wait until rates come down.”**

And maybe rates will.

But if rates fall significantly, you probably won’t be the only buyer who notices.

Lower rates can bring more buyers back into the market. More buyers can create more competition. More competition can lead to fewer concessions and stronger home prices.

So waiting for a better interest rate could potentially mean giving up some of the negotiating leverage available today.

There’s also another important distinction:

**You may be able to refinance your mortgage later if rates improve.**

But you cannot go back later and renegotiate the purchase price you agreed to today.

## Today’s Buyer Can Negotiate the Whole Deal

This is why I don’t think buyers should judge the current market simply by looking at the mortgage rate.

Look at the whole transaction.

Maybe the house is listed for $425,000.

Maybe you negotiate it down.

Maybe the seller contributes toward your closing costs.

Maybe those funds are used to reduce your interest rate.

Maybe the seller agrees to repairs you would have paid for yourself in a hotter market.

Suddenly the deal looks very different than simply saying:

**“Rates are 7%, so I’m not buying.”**

## The Best Market Isn’t Always the Market With the Lowest Rate

The best time to buy isn’t necessarily when mortgage rates are at their lowest.

Sometimes it is when you have the most negotiating power.

Right now, Southwest Florida buyers are seeing longer marketing times, homes selling below asking price and sellers adjusting prices.

That doesn’t mean every home is a bargain.

And it certainly doesn’t mean everyone should buy right now.

But if you have stable income, plan to stay in the home and can comfortably afford the payment, this may be a market worth looking at more closely.

Because sometimes the best opportunity appears when everyone else is waiting for conditions to become “perfect.”

And perfect rarely happens.

**Yes, 7% rates suck.**

But having the ability to negotiate the price, the closing costs and potentially even your mortgage rate?

**That part doesn’t suck at all.**