Why you should ask for a rate buydown
October 2, 2026 2:18Dan Ardis, NMLS# 1412272
Mortgage rates jumped to their highest level since 2023 this week, even though inflation came in cooler and hiring slowed sharply. Here's what happened, what it means for your payment, and the move buyers should make right now.
The takeaway: on a $400,000 loan, today's rate costs about $250 a month more than a year ago. Negotiating a seller credit toward a rate buydown can win a big chunk of that back. A half-point buydown on the same loan saves roughly $134 a month. Watch the next inflation report closely, with two Fed meetings still left this year.
Mortgage rates just hit their highest level since 2023, and it is changing the math for buyers.
Even though inflation is cooling, borrowing costs are up, making monthly payments significantly more expensive in this housing market. I break down how you can use seller credits for a rate buydown to offset these higher costs and protect your budget.
Key Points from This Video
- Freddie Mac 30-year fixed average hits 7.28%
- PCE and core PCE inflation come in below forecast
- Dallas Fed trimmed mean at 2.2%
- September jobs report: just 29,000 jobs added
- Unemployment rises to 4.2%
- Case-Shiller home prices up nearly 3% since March
- Q2 GDP revised up to 2.2%
Dan Ardis is a Bakersfield-based mortgage broker with 20+ years in the industry, including experience as a Senior Specialty Underwriter. He originates residential and commercial loans for Kern County clients and in 49 states through Barrett Financial Group.
More Videos from Dan
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First Fed Hike in 3 Years, and It's Not the Last...
The hidden leverage you have as a buyer right now
Why Your Mortgage Payment Depends On This Report
Why You Shouldn't Wait For A Housing Crash
Everyone Is Waiting for Rates to Drop... But What If They Don't?
Questions After Watching?
Dan answers mortgage questions for Bakersfield buyers and investors. Call (661) 342-9381 or get pre-approved online.