JAIME’S REAL ESTATE BRIEF Why Mortgage Trends Since 2020 Show That Buying Now Can Be a Smart Long-Term Move

Jaime Hechtman Ulloa - Patriot Real Properties

Over the last few years, the mortgage market has gone through one of the most dramatic shifts we’ve seen in decades. Since 2020, we’ve experienced historic lows, rapid rate increases, market uncertainty, and now, finally, signs of stabilization that are creating new opportunities for buyers and homeowners.

Right now, mortgage rates are moving in a direction that many buyers have been waiting for. The average 30-year fixed mortgage recently fell to 6.01%, the lowest level we’ve seen since September 2022. Just a year ago, rates averaged around 6.85%, which shows how quickly affordability can change when rates begin to ease.

What this means from my perspective as a real estate professional is simple: timing matters , but long-term strategy matters more.

What We’ve Learned Since 2020

When rates were extremely low, buyers rushed into the market. As rates climbed, many paused and waited. But historically, real estate has proven to be one of the strongest long-term investments because:

• Home values tend to appreciate over time

• You build equity instead of paying rent

• Refinancing opportunities often come later when rates improve

Freddie Mac’s chief economist recently noted that lower rates help make homeownership more affordable and also create savings opportunities through refinancing….in fact, refinance applications have more than doubled over the past year.

What’s Happening with Housing Supply

New construction is also sending important signals. Homebuilding permits rose to 1.45 million in December after a slowdown, although builders faced challenges in 2025 due to weak demand and rising costs.

• Single-family permits dropped nearly 11%

• Multifamily construction jumped almost 19%

• The Northeast and West saw gains while other regions slowed

What this tells us is that inventory remains tight in many markets, and when supply is limited, strong homes tend to hold their value well.

Mortgage Activity Is Picking Up Again

We’re seeing early signs of renewed confidence:

• New home loan applications rose 2.8% last week

• Refinance applications jumped 7% week-over-week and are up 132% year over year

• Purchase activity remains steady as buyers slowly re-enter the market

Lower rates are helping buyers feel more comfortable moving forward, even while the economy sends mixed signals.

Why I Believe Now Can Be a Smart Time to Buy

I always tell my clients this: You don’t wait to buy real estate, you buy real estate and wait.

The right home purchased today can become:

• A long-term wealth builder

• A hedge against future rent increases

• A property you may refinance later if rates continue to fall

Many buyers focus only on the rate today, but the bigger picture is the investment over time. Locking in a home now, while rates are improving and before demand fully returns, can position you ahead of the next wave of competition.

My Advice

If you’ve been sitting on the sidelines since rates rose, now is the time to revisit the conversation. Even small rate changes can significantly impact your monthly payment and long-term savings.

Real estate is not just about timing the market, it’s about building stability and equity for your future!

If you want to talk through your options or run real numbers based on your situation, I’m here to help.

Jaime Hechtman Ulloa

Patriot Real Properties

Call/Text: 631.664.0268