📉 Why Ultra-Low Pandemic Rates Aren’t Coming Back — And Why That’s Actually Good 👍

🏦 Goodbye 2% Rates: Here’s Why Today’s Market Is Still a Golden Opportunity for Homebuyers & Investors ✨

📉 Why Ultra-Low Pandemic ERA Rates Aren’t Coming Back — and That’s OK

For years, buyers, investors, and even real estate agents have held onto one big hope:
“Rates will go back to 2% and 3% again.”

But here’s the truth — backed by Fed policy, inflation trends, and global capital markets:

👉 Those pandemic-era rates aren’t coming back.
👉 And it’s actually one of the BEST things that could happen for today’s real estate market.

As a mortgage broker who helps buyers, business owners, and investors across Houston and the U.S., here’s the real breakdown of what’s happening and how to use this market to your advantage.

Why We’ll Never See 2%–3% Rates Again

1️⃣ The Pandemic Rates Were Artificially Engineered

The 2020–2021 rates were the result of:

·Emergency quantitative easing

·Fed buying trillions in mortgage-backed securities

·Crisis-level economic shutdown

Those were NOT normal market conditions. They were emergency responses to prevent a collapse.

You can’t recreate a once-in-a-century global shutdown to get 2% mortgages back.

2️⃣ The Fed’s New Priority Is Price Stability

Inflation has reset the Fed’s playbook. We’re not going back to “free money.”

Today’s environment supports:

·Moderate inflation (2–3%)

·Higher baseline interest rates

·More stable lending markets

Translation:
Rates between 5%–7% are the new normal.

3️⃣ Higher Rates Actually Create More Opportunity

Here’s the part most people miss:

❌ Low rates benefit people who already own everything.
✅ Normal rates benefit buyers who want fair access to deals.

When rates are higher:

·Sellers lose pricing power

·Investors get better cash flow and better cap rates

·First-time buyers stop competing with hedge fund cash

In other words…
Low rates inflated home prices.
Today’s rates normalize them.

4️⃣ Houston & Texas Investors Are Actually Winning More Today

Because price growth has slowed (or corrected), smart buyers can now:

·Negotiate seller credits

·Get better purchase prices

·Use 2-1 buydowns, lender-paid MI, and DSCR loans

·Leverage tax benefits more efficiently

If you’re an investor, today’s market actually delivers better long-term ROI than 2021 ever did.

5️⃣ The Smart Move Now? Focus on Monthly Payment Strategies

Instead of waiting for the “magic rate,” focus on strategies like:

·Temporary buydowns

·Permanent rate buydowns

·Lender-paid MI

·ARM loans

·Seller-paid concessions

·Refinance-to-Rate-Drop programs

With the right structure, buyers today often achieve 2021-level payments WITHOUT relying on a 2% loan.

Final Takeaway: Don’t Wait for a Rate That Isn’t Coming

Waiting for 2% mortgage rates means waiting forever.

Instead…
🔹 Buy when prices are favorable
🔹 Let the market cool off competition
🔹 Use advanced mortgage strategies
🔹 Then refinance when the cycle shifts

Winners in real estate don’t time the bottom —
they move when the numbers work.

If you want a personalized breakdown for your situation, Medallion Funds can structure the smartest, most cost-effective loan strategy for your next purchase.

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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory