7% mortgage rates are back following credit downgrade — But Here’s Why It Shouldn’t Stop You

We’ve seen headlines lately that might make buyers feel hesitant: mortgage rates are back above 7%, following the U.S. credit downgrade by Moody’s on May 16. Naturally, that kind of news can make people nervous, especially those on the fence about buying a home or selling and moving up.

But let’s take a step back and look at the full picture.

Yes, the 30-year fixed mortgage rate rose to 7.04% as of May 19, according to Mortgage News Daily. The rate jump was tied to rising treasury yields after Moody’s downgraded the U.S. credit rating, citing concerns over the growing federal deficit. The downgrade and recent economic developments have caused some uncertainty, but that doesn’t mean the sky is falling — and it definitely doesn’t mean real estate is off the table.

From my perspective, this is one of those moments where context matters. We’ve become so accustomed to the historically low rates of 2020 and 2021 that anything above 6% feels like sticker shock. But historically speaking, 7% is actually within a normal range. In the early 2000s, 7% was considered a good rate, and plenty of buyers still built wealth through homeownership during that time.

 Why it still makes sense to get into the market now. If you're thinking about waiting for rates to drop before buying or selling, here are a few things to consider:

1. Waiting May Cost You More: Home prices in many parts of metro Atlanta are still rising, even if the pace has slowed. A lower rate later could be offset by a higher price tag or increased competition once rates drop and more buyers flood the market.
2. Refinancing Is Always an Option: If you can afford a home now and it meets your long-term needs, locking something in and refinancing when rates fall later gives you flexibility and peace of mind.
3. Life Doesn’t Wait on Rates: One thing I’ve noticed, especially lately, is that many of my clients aren’t buying or selling just because of the market — they’re doing it because of life. Job changes, growing families, downsizing, relocating — those things don’t pause because the rate ticked up.
4. More Inventory, More Choices: With more homes coming onto the market and the "lock-in effect" slowly fading, buyers today have more options and negotiating power than they’ve had in years.

From a personal standpoint, I’ve always believed in approaching real estate decisions from a place of strategy and long-term thinking. Yes, mortgage rates matter — but so do timing, goals, and the right opportunity. Trying to perfectly time the market is like trying to predict the exact day the stock market will go up or down — no one really knows. What we can do is make informed, confident decisions based on what’s happening now and what aligns with your personal or financial goals.

So, if you’re asking yourself, “Should I wait?” — my honest advice is: don’t wait out of fear. Instead, let’s talk about your options, your numbers, and your goals. There are always opportunities — even in challenging markets.

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If you or someone you know is thinking about buying, selling, or simply wants to understand how to navigate today’s real estate landscape, I’d be happy to help. Referrals are the heart of this business, and I’m always here to chat and offer guidance wherever I can.

Text/Call at (470) 283-0218

Email: franckmunana@crestpointcapitalre.com

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