Your options when mortgage rates are at 7%: a practical guide for Tulsa Metro buyers
With 30-year fixed mortgage rates hovering around 7.3% in October 2026, a lot of buyers are wondering what their options are. The good news: you have more choices than just "take the rate or wait." Here's the full menu, from seller-funded buydowns to ARMs to negotiating price, and how to decide what's right for you.
What are my options when mortgage rates are high?
Buyers at today's rates have several strategies: seller-funded rate buydowns (which lower your payment for the first year or two), adjustable-rate mortgages (which start lower than fixed rates), negotiating a lower price or seller concessions instead of rate help, buying discount points to permanently lower your rate, and in some cases waiting while you build a bigger down payment. Each one works differently, and the best choice depends on your timeline and budget.
What is a seller-funded buydown?
A seller or builder contributes money at closing to lower your interest rate for the first one to three years. The most common is a 2-1 buydown: 2% off in year one, 1% off in year two, then your full fixed rate for the rest of the loan. It's a popular incentive right now, especially in new construction, and it's written into the purchase contract.
Should I consider an adjustable-rate mortgage (ARM)?
ARMs start with a lower fixed rate for a set period, then adjust with the market. Right now a 5/1 ARM is running around 6.5-6.6%, roughly three-quarters of a point below the 7.3% 30-year fixed average. If you're confident you'll move or refinance within the fixed period, an ARM can save thousands. If you're staying long-term, the payment uncertainty after the fixed period is the tradeoff.
Can I negotiate a lower price instead of rate help?
Yes, and sometimes that's the smarter move. In a balanced market, sellers are often open to price reductions or concessions like covering closing costs. A dollar off the price saves you money every month for the life of the loan, while a temporary buydown only helps for the first year or two. Your agent can help you figure out which negotiation gives you more value.
What are discount points?
Points are prepaid interest that permanently lower your rate. One point typically costs 1% of the loan amount and lowers your rate by about 0.25%. If you're staying in the home for many years, buying points can pay off. If you might move in a few years, the break-even point may be too far out to be worth it.
Should I wait for rates to drop?
Waiting is a gamble. No one knows where rates are headed, and while you wait, home prices and rents can keep rising. A better approach: run the numbers on buying now with a buydown or ARM versus waiting, and factor in how long you'd be paying rent in the meantime. If you find a home you love at a price that works, today's rate may still beat next year's price.
How do I decide which option is best for me?
Start with two questions: how long do you plan to stay in the home, and what monthly payment fits your budget? Short stay, an ARM or negotiating price may win. Long stay, a fixed rate with points or a buydown gives you certainty. A good lender can show you the exact payment for each option side by side, and a local agent can help you negotiate the best deal on the home itself.
Every buyer's situation is different, and the right move depends on your numbers. Nancy Wilmeth helps Tulsa Metro and Broken Arrow buyers compare their options and negotiate strong deals. Text or call 918-896-3526 or book a free consultation to talk through what makes sense for you.