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What can buyers do to combat rising interest rates?

A fine line between inflation, control, and recession

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Despite rising interest rates, now may still be the optimal time to buy before the rates go higher.

During the past quarter, we have seen most favored interest rates rise from 3.5% to 4.5%. While these rates are still historically among the lowest in decades, that fact may not make you feel any better about the possibility of paying more for your first or next home.

This week’s rate is the highest we have seen in two-and-a-half years. Loan officers are projecting further increases in rates as the Federal Reserve (the “Fed”) attempts to control inflation. Basic economics tells us that more expensive credit slows spending, which, in turn, lowers prices. It can be a fine line to walk between inflation, control, and recession.

People who are seeking a conventional loan of $647,200 or less with a 20% down payment will likely receive the best 30-year fixed rate if they hold a salaried job and have a credit score of more than 740.

Using an example of a typical $750,000 D.C. rowhouse with a $150,000 down payment, the difference between the principal and interest payment at 3.5% and 4.5% is $346 a month without taking tax-deductible mortgage interest into consideration.

Often, there is a rate premium paid for the purchase of a condominium or cooperative apartment, for being self-employed, for less than stellar credit, and for lower down payments or larger loans.

So, what can you do to minimize the effects of an increase in interest rates?

First, make sure your credit is squeaky clean. Consult a loan officer to get a copy of your tri-merged credit report (Equifax, Experian, and Trans Union) to avoid any surprises. Do not start paying off debt or closing credit cards without your loan officer’s input. There is such a thing as good debt where credit is concerned.

Shop around for your mortgage and consider alternative mortgage programs. For example, as rates rise, adjustable mortgages with payments fixed for 5, 7, or 10 years can be more affordable. A 30-year fixed rate, often thought to be the safest bet, may not be as desirable if you will not be keeping the home for 30 years.

Search for any special benefits for which you may qualify. D.C., Maryland, and Virginia all have programs geared toward people with low to moderate incomes or who have as little as 3% for a down payment. The funds for these programs may have been secured when rates were lower, with savings passed along to the consumer.

This should be the time to look for sellers who have assumable FHA mortgages obtained when rates were lower. In addition to lower rates, the cost of assuming such a mortgage will be less than originating a new one, so you might save money in closing costs as well. VA loans can also be assumed by active-duty military or veterans, or by others under certain circumstances.

Have the lender you choose provide you with an estimate of what your mortgage payment may be at different rates. Even if you can afford the payment, it is best not to be surprised as you go through the process. When you find a rate that gives you a comfortable monthly payment, lock it in so your rate will not go up if or when the Fed makes another adjustment.

Consider whether to pay points to lower your interest rate. One point is equal to one percent of the loan amount, but you can “buy down” the rate in increments of as little as 1/8 of a percent. When interest rates were higher than 10%, it was quite common for sellers to pay points to help a buyer afford his loan. While I do not anticipate this happening here anytime soon, the “buy down” procedure still exists.

Find an infusion of cash to lower your loan amount. The National Bank of Mom and Dad is a common place to obtain a gift of funds. In 2022, each parent can give a gift of $16,000 to a child or grandchild without tax consequences to the giver or the recipient. Consult your tax adviser for more information.

If you have a 401k retirement plan with your employer or a federal government Thrift Savings Plan, you can borrow from it without incurring penalties and pay yourself back with interest. Most lenders will not count this against your debt load.

Lastly, you may need to adjust your expectations regarding size and location of your prospective home, since any increase in rates will affect everything from entry-level condos to luxury properties. Still, with the Fed anticipating raising rates in small increments through 2023, this may still be the optimum time to buy.

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

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Real Estate

When buying a home, it’s decisions, decisions, decisions

Keeping notes on the process makes for an informed purchase

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If you’re buying a home, take careful notes throughout the process. (Photo by Andy Dean Photography/Bigstock)

When looking to buy a home, there are lots of details to consider. Many of my clients would come to me and say, “Joe I want to buy a place, but I haven’t decided which neighborhood to buy in.” And the struggle was real. A few clients had everything decided from the color of the hallway walls to the cabinet handles and sometimes which three square blocks they wanted to look at. 

But other clients were occasionally looking at properties in areas as distinct as Union Market/NOMA, Brookland, Logan Circle, and then we would even go across the river to look at a property in Shirlington or the Van Dorn areas of Virginia, which all have their own unique flavor and characteristics.

Sometimes clients would tell me, “I only want to look in Mount Pleasant or Adams Morgan.” Or, “don’t even show me any properties west of this street or south of that street.” My job wasn’t to convince people where to live. It was to just take the parameters they set for me and find as good of a property in that zone as I could, coordinate the showings and, if necessary, offer the strategy.  

One can see that buyers often had more decisions to make than a seller. From a seller’s perspective, the house was where it was, and we just had to make the best of it. But working with a buyer could mean looking at five different neighborhoods, and then being a “thought partner” to help them figure out which were the top two or three areas they had seen, and then further distilling those down into what was available and weighing those options against each other. 

One house could have the dream bathroom but also be located six blocks further from a Metro stop, walkable shopping and dining, and “just too far away from my friends.” Another house could have all the neighborhood options a client was looking for, but was just not in turnkey condition, and would require an additional $30,000 of upgrades once purchased to make it into the dream home they envisioned.  

One activity I often asked buyers to do was to keep an active list in their heads of the properties they liked, and to keep a running rank of the top three. I often encouraged them to bring a notebook along on the journey where they could take notes and write down questions they thought of as they looked. It was an important decision, and sometimes the largest purchase of their lives. Why not take it a little seriously, and take notes? This could often help the buyer later when they felt it was time to decide.  

The point here is, keeping a notebook handy can sometimes help a person with what feels like an overwhelming process. It provides a space to explore how one feels, jot down important details to remember, and then use that to make an informed decision.  


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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Under-the-radar Delaware beach towns smart buyers are targeting

There are other options if Rehoboth prices are scaring you off

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If you want to escape the crowds and nightlife scene of Rehoboth Beach, Sussex County offers plenty of options. (Blade file photo by Daniel Truitt)

Look, we love Rehoboth. We will always love Rehoboth. Queer folks have been flocking there since the 1940s, and with scores of LGBTQ-owned businesses and a Pride calendar packed tighter than the boardwalk in July, “Rehomo” earned its crown fair and square.

But let’s be honest with each other: trying to buy property there right now feels a lot like trying to get a reservation at the one good restaurant in town on a Saturday in August. Everyone wants in, inventory is tighter than your swim trunks after Labor Day brunch, and the prices have officially entered “are you kidding me” territory.

So here’s a thought: What if you didn’t fight the crowd? What if, instead, you let Rehoboth keep doing its glorious, chaotic, glitter-bomb thing and you quietly built your beach life 15 minutes away for considerably less drama and considerably more square footage? Here are four towns ready for their close-up.

Lewes: The Charming Overachiever

Lewes is what happens when a beach town actually has its life together. Historic charm, walkability, proximity to Cape Henlopen State Park, less crowding, and a strong year-round community. Unlike towns that turn into ghost towns after Labor Day, Lewes maintains a real community all year long, which is more than we can say for some situationships.

And right now, the market is practically begging you to make a move. It’s one of the most desirable and stable markets in the county — built for buyers thinking long-term, not flippers, and Sussex County overall has flipped into genuine buyer’s market territory for the first time in years. Translation: you finally get to be the one with leverage. 

Bethany Beach: My Personal Pick

Full disclosure: I own in Bethany. So consider this section a little biased — and also the most honest thing I’ll tell you in this whole article.

When I drive down from D.C., I’m not looking for more of D.C. I love this city, but I also love leaving it — and yes, some of the people in it too (you know who you are, and so do I). Bethany gives me that full exhale. It’s quiet in the way that actually means something: fewer crowds, slower mornings, a soundtrack that’s mostly waves instead of nightlife. It leans hard into its “quiet resort” reputation, with low property taxes and a limited geographic footprint, and it is not the least bit sorry about it. 

But quiet doesn’t mean isolated. I’ve got a genuinely excellent food scene nearby, real shopping, and a string of charming neighboring beach towns — and when I do want a taste of Rehoboth’s energy, it’s a short, easy drive away. I get to choose my dose of chaos instead of living inside it.

And here’s the part that matters most for this article: the price. If you’ve looked at Rehoboth listings and quietly closed the tab in despair, I need you to hear this — you can absolutely afford a beach house. It just doesn’t have to be in Rehoboth. Bethany’s average home value sits around $848,592, which is still real money, no question — but it buys you more house, more land, and more peace than the same budget gets you closer to the boardwalk. Bethany is welcoming too, just without Rehoboth’s decades of built-in queer institutional history — and for plenty of us, that trade-off is more than worth it. 

Fenwick Island: Small Town, Big Flex

Fenwick rarely gets mentioned and, frankly, it should be insulted. It’s tiny, it’s quiet, and it has beach access without the carnival energy. The market data tends to lump it in with Bethany, where single-family oceanfront homes clear $1 million while entry-level condos start in the $600s — proof that “under-the-radar” doesn’t mean “bargain bin,” it means “fewer people fighting you for it.” 

South Bethany: For the Boat Gays

Some of us want sand between our toes. Others want a private dock and a boat named something deeply unserious. South Bethany’s canal communities are built for the latter — water access on both sides, fewer crowds, and a lifestyle that says, “I have a captain’s hat and I am not afraid to wear it.”

The Math Works in Your Favor Now

Here’s the part that should really get your attention: Sussex County’s median sold price has dropped to $440,000, down 3.3% year-over-year, and buyers are routinely closing around 88 cents on the dollar compared to asking price. That’s a far cry from the unhinged bidding wars of 2021 and 2022, when overpaying was basically a competitive sport. Inventory across the county sits at nearly 2,500 active listings — the most of any county in Delaware, meaning you actually get to be picky for once. Revolutionary, we know. 

And no, choosing one of these towns doesn’t mean leaving your people behind. Sussex Pride serves the entire county, not just Rehoboth proper, and CAMP Rehoboth’s resources extend well beyond town limits too. You’re not exiling yourself to the suburbs of queerness — you’re just getting a bigger kitchen, a quieter porch, and a much shorter line for the bathroom. 

Add in the fact that Delaware has no estate tax and some of the lowest property taxes around, savings that genuinely add up over a retirement horizon, and the case writes itself. Rehoboth will always be the beating, sequined heart of queer beach culture in Delaware. But if you’ve been telling yourself a beach house isn’t in the cards — I’m here to tell you it absolutely is. It just might be 15 minutes south, with your own quiet porch, your own salt air, and considerably more room to breathe. 

Have a real estate question or Rehoboth market tip? Reach out to [email protected] for LGBTQ-friendly real estate resources in the Rehoboth area.


Justin Noble is a Realtor licensed in D.C., Maryland, and Delaware with Monument Sotheby’s International Realty. Reach him at [email protected] or 302-897-7499.

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‘Culture eats strategy for breakfast’

Real estate agents must adapt, learn how to manage from within

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A real estate agent is contractually bound to act on their client’s behalf. (Photo by Andy Dean Photography/Bigstock)

“Culture Eats Strategy for Breakfast” was a phrase often repeated in many of my management courses from the University of Illinois. The concept was discussed at length – how the best laid plans can sometimes be supported or derailed by the culture of the people involved in whichever project to be implemented. Whether it be a project to implement new software, roll out a new product or service, or just reaching a sales target, the way the team involved works together can indeed affect the outcome.  

Perhaps this is just another way to say, “teamwork makes the dream work!” Most teams usually have someone who is designated as a leader. The leader can try to lead through authority and control or can alternatively try to lead through influence and encouraging a more collective framework for solving problems.  

Why does this matter when picking the right real estate agent or team to work with? Besides having a job as a salesperson for the brokerage, the real estate agent is contractually bound to act on their client’s behalf. The buyer broker agreement is in place so that the agent and the client can work together as a team in communications regarding offer strategy, during negotiations, implementing marketing plans, as well as selecting which renovations or upgrades to choose before selling a property.  After the property goes under contract, the job isn’t “done”.  There is still work to do.  

At this point, the agents then turn into a project manager of sorts – coordinating communications between the lending team, the title attorneys, the other client’s agents, any governmental agencies that could be involved in down payment assistance or helping to clear a property for a sale, and often times groups like a condo board, a home inspector, or contractors when arranging repairs and estimates before a final walk through. 

In short, the agent takes on somewhat of a “leadership role” in the transaction and ensures that all the ducks stay in a row until the project is complete.  That agent will hopefully be very fluid and forthcoming with their information, copying the required parties on all communications and creating a “paper trail” of who said what or didn’t offer to fix A, B, or C, so that all the minutiae of the contract can be addressed and fulfilled before the settlement date.  The agent often must wear many hats and quickly learn the communication styles of an entire new set of people in a short period.  One person may not return calls for a week after being contacted.  Another person may go on vacation at the beginning of the process and not return emails for two weeks.  Another person may wish to have daily updates of the progress of the process. 

In this way – an agent quickly learns in each transaction that “culture can eat strategy for breakfast.” Because the agent must adapt to a wide variety of communication styles, learn how to “manage from within”, build support for closing the project by the due date, and somehow keep all the interested parties invested, engaged, and responsive.  

Who you work with matters when picking the right person to represent you in your next transaction – so, just remember that “teamwork makes the dream work!”


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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