Michael Papa and his wife, Alyssa Papa, with their son, Michael Jr., are shown in their Jordan Ranch area home Tuesday, April 18, 2023, in Fulshear.When Houston native Alyssa Papa and her husband were looking to move back to Houston from Baton Rouge, La. last year, they were drawn to the Heights' urban lifestyle and historic structures. They knew Houston housing prices were more expensive, but higher interest rates and the region's soaring home prices still stung.
The Papas are among Houston-area residents refusing to let higher mortgage rates and home prices prevent them from buying a home. Instead, today's buyers are benefiting from a market with more available homes and financial incentives from sellers to defray higher mortgage rates. Some turn to adjustable rate mortgages or tap down-payment assistance programs to make their budgets work.
Many homebuyers like Menefee are trying to keep a similar, long-range view on mortgage rates, said McMartin of Compass Real Estate. “Everyone I talked to is like, ‘Oh,you're buying a house right now with interest rates like this? I would never do that!’ But I have a desire for more space, to have the investment and it just came to the point where I just felt so ready,” Oakie said.adding that in the case of a starter home, a buyer could move before the loan rate becomes adjustable.“Where I don't like the use of is if you’re using it as a crutch of affordability.