Why It's Still a Good Time to Buy: Mortgage Rates This Fall

Heather Bowles

Oct 15

3 min read

Mortgage rates have pushed back above 7% this fall, and the headlines are loud. But for buyers in Nashville and Williamson County, the rate is only one piece of the math — and right now, several other pieces are quietly working in your favor.

If you've been asking yourself whether to wait it out, here's an honest look at where rates stand and why the best buyers aren't sitting on the sidelines.

Where Rates Stand Right Now

According to Freddie Mac's weekly survey, the average 30-year fixed rate was 7.40% as of October 8, 2026 — the highest level since November 2023, and the seventh straight weekly increase. The 15-year fixed averaged 6.73%. For context, the 30-year was sitting near 6.3% this time last year.

The driver is the bond market. Mortgage rates closely follow the 10-year Treasury yield, which has climbed on expectations that interest rates will stay higher for longer.

What does that mean in real dollars? On a $600,000 loan, the difference between 7.4% and 6.4% is roughly $400 a month in principal and interest — meaningful, but not the dealbreaker many buyers assume, especially when you can negotiate other parts of the deal (more on that below).

Rates change weekly and vary by credit, down payment and loan type. Talk with a trusted lender for a quote specific to you.

Why It's Still a Good Time to Buy

1. Less competition means more leverage. When rates rise, a lot of buyers hit pause. That's exactly when motivated buyers can avoid bidding wars, take time on inspections and negotiate price, repairs or closing costs — terms that were nearly impossible to win a few years ago.

2. Sellers and builders are offering incentives. Rate buydowns, closing-cost credits and upgrade packages are back on the table, particularly with new construction. A seller-paid buydown can lower your rate for the first years of the loan, or permanently, and offset much of today's higher payment.

3. Waiting has its own costs. If rates ease and buyers return all at once, competition and prices can climb with them. Every month of waiting is also another month of rent that builds no equity.

4. You can refinance later — you can't renegotiate the price. The purchase price is locked in forever; your rate doesn't have to be. If rates come down in the future, refinancing may be an option. There's no guarantee rates will fall, so buy a payment you're comfortable with today.

5. Middle Tennessee's fundamentals haven't changed. Tennessee has no state income tax, corporate relocations keep landing here, and population growth continues to outpace much of the country. Buying in a market with that kind of long-term demand is a different proposition than buying almost anywhere else.

How to Buy Smart in a 7% Market

Get fully preapproved first. Know your real numbers — and what payment, not just what price, fits your life.
Ask about buydowns. Compare a temporary buydown (like a 2-1) against a permanent one, and ask whether the seller or builder will cover the cost.
Negotiate beyond price. Closing costs, repairs, upgrades and timing all have value in this market.
Shop lenders. Rates and fees can vary meaningfully from one lender to the next.
Look at new construction. Builders are often more flexible on incentives than individual sellers.