Mortgage Rates, Mindset, And Making The Move

If you’ve been waiting for mortgage rates to start with a five, here’s a reality check: the difference between 5.9% and 6.1% on a typical loan can be about the cost of a weekly meal out. We dig past the headlines to show how psychology, payment fit, and real-life needs drive better decisions than chasing a “perfect” number. From the lock-in effect that keeps inventory tight to the life events that still push moves forward, we unpack how buyers and sellers can navigate a market that looks different from 2021—and why that’s okay.

We take you inside Western North Carolina’s housing pulse with fresh local data: low active inventory, steady monthly sales, and continued demand from retirees, remote workers, and second-home buyers. You’ll hear how flexible zoning, smaller footprints, and smarter design help ease supply pressures, plus why 25–30% of transactions close with cash. We also talk straight about affordability: prices rose, payments climbed, and expectations got anchored to an outlier era. The solution isn’t perfection—it’s strategy.

For investors and move-up sellers, we map practical plays: 1031 exchanges to defer capital gains, rent-backs and timing tools to reduce buy/sell stress, and refinance optionality if rates drop later. For first-time buyers, we share how to assess true monthly impact, weigh lifestyle trade-offs, and build a plan using points, credits, and homes with income potential. And because mindset matters, we lean on habit-building principles to help you act with clarity: test your budget, focus on fit, and let the numbers—not fear—decide.

Ready to make a smart move in Western North Carolina or Upstate South Carolina? Subscribe, share this with a friend who’s “waiting for the fives,” and leave a quick review to tell us what you want us to cover next.

Transcript

Welcome And Who We Serve

SPEAKER_01 0:00

Hello, friends. Thank you so much for being here. This is the George Real Estate Group podcast, which is a production of our live weekly radio shows hosted on multiple radio stations here in Hendersonville, North Carolina. The George Real Estate Group serves Western North Carolina and Upstate South Carolina, and it is a privilege to share positive news about our local real estate market and community. Thanks so much for subscribing. And of course, if you have any real estate questions or if we can help you in any way, be sure to reach out. Visit us at George Real Estate Group Radio.com for more information. Good morning and welcome to the George Real Estate Group Live Radio Broadcast here on the queue every Monday morning. Time is flying by. Can you believe we're in the second week of March? And uh spring breaks coming up next week for the local Henderson County kids, and uh my kids are looking forward to that. And uh just so much to be grateful for and thankful for. And here we are uh on the George Real Estate Group live radio broadcast here in the queue every Monday morning. If you're tuning in for the first time ever, the George Real Estate Group is located in Flat Rock. We serve all of Western North Carolina and the upstate. If you're thinking of buying, selling, or investing in real estate, we'd love to have the conversation. Uh we have the experience of helping over 1,600 families throughout the years uh with their real estate needs. And we have over a hundred years combined experience at the George Real Estate Group. We have incredible agents, uh, incredible staff, and and we again we'd love to help. Uh there's no pressure, there's no cost, there's no obligation to have the conversation, whether it's your personal home or uh you're thinking about you know the implications of taxes or the the implications of you know buying, then selling, or selling, then buying. I mean, there's so many different, there's so many different approaches, you know, as to real estate. Maybe you're you're working through uh an estate, maybe you're working through family property. I mean, there's so many different reasons why you might buy or sell. And there's a lot of times it's a wonderful, beautiful, positive reason why you're buying or selling. And then sometimes it can be a challenging moment in life. And and we know real estate happens, therefore, uh, you know, real estate happens around life. And and it's you know, no matter what the interest rates are, no matter what the economy is doing, no matter, I mean, we saw what happened with the recovery from Helene, and and now with the you know, of course, the the political challenges and the global challenges, and life is still happening, and we see that we're navigating through that. And again, if we can help you in any way, again, if you're curious what your home is worth, if you're curious, you know, what the the market's doing, if you're cute, if you're curious about, I mean, there's just so many, so many things uh, you know, in navigating uh, you know, this with the interest rates and the economy, and again, all these these things. I mean, again, all these all these factors that come into play. So your unique home, your unique situation, your whatever dynamics going on, and we take it from a consultative approach. You're uh, you know, we're look ours at ourselves as a bit of a quarterback between the you know, working with your lender and the attorneys and working with your CPA, working with your financial advisor, working with the inspections, the the pests, the radon, the survey, the appraisals. I mean, there's so many components that that come into play. It's just so many factors. And again, we look at ourselves as the quarterback helping you navigate through you know the buying and selling process. And and also we work with the state attorneys and trust attorneys, and and maybe you're thinking strategically about you know planning ahead. I mean, there's so many different scenarios. And so if we can help you in any way, give us a call 828-393-0134. 828-393-0134. We'd love to have the conversation. There's, like I've said, no pressure, no cost, no obligation. You can call us directly. You can also stop by our office there in Flat Rock. We'd love to connect with you there in our office. We'll get you a cup of coffee. Actually, our friends at Hubba Hubba Barbecue are opening up, I believe. Uh their first day's coming up, I think this week. Watch their social media. So you got Hubba Hubba Barbecue, Campfire Grill there, our friends at the Wrinkled Egg and uh, you know, the Rainbow Row, which is a tip of the hat to Charleston, South Carolina's Rainbow Row. And as you might be aware, Flat Rock has a lot of ties to Charleston, where the Charleston uh families, uh, you know, hundreds of years hundreds of you know, a hundred years ago would escape the heat, and then that continued uh I think probably till there was air conditioning, where families would get out of the Charleston summer heat and come up to the mountains. And Flat Rock and Charleston have a lot of ties there. But stop by our office there on Rainbow Row in Flat Rock and say hello. If you can find us online at realestatebygreg.com, Greg is an acronym for George Real Estate Group. You can follow us on social media, Facebook and Instagram. We also have our radio shows on podcasts. You can follow us on your favorite podcast uh platform, uh you know, Apple, Amazon, Spotify. You know, we'd love to connect with you there and you know follow us on your podcasts. Again, we'd love we appreciate your support there and again social media. You know, this there's a lot of uh movement in the mortgage uh interest rates. Uh and there's you know, mortgage rates at at some point dropped into the upper 5% range already twice this year, you know, but both times it only lasted for a few days and now moving back uh into the low six percent range. And so a lot of people might have thought, oh, I missed it, you know. And if you thought you're the the only one that missed it, you're not. You know, a lot of buyers are watching rates very closely like right now, and a lot of them are treating the fives like some you know kind of magic number, and all and it almost like once the rate starts with a five instead of six, suddenly the entire housing market changes. And from a psychological standpoint, it it absolutely feels different. Seeing a five point nine nine percent instead of a six point one percent just feels better, but the part that many buyers never actually sit down and calculate is that the payment isn't isn't what most people think, and and so you're looking at you know the difference between a a 6.1 percent and a 5.9% interest rate on a$500,000 house uh that you're financing, that's a$64 a month difference. It we're not talking$300 or$500, this is sixty dollars. And of course, over the course of uh 30 years, that$64 adds up. But in terms of a monthly lifestyle impact, it's not uh it's it's a probably a smaller impact than most buyers imagine. And and when they say they're waiting for the fives. And so in the low sixes, uh that that is you're you're essentially there, it it's not that much difference than the 5.99. And so for a lot of households,$64 might be maybe a meal out, honestly, or even a tank of gas. And so but the thing is the psychological impact of number of numbers can feel huge, but the actual monthly financial impact is often very small. And another important thing to consider is you know what economists are actually forecasting. And so a lot of housing economists and mortgage analysts are not predicting a long-term return to mortgage rates deep in the 5% range anytime soon. And it and it doesn't mean we'll see the occasional dips, and in fact, we probably will. Rates move every day, and we'll see likely see them touch into the high fives from time to time. But the the broader expectation is that mortgage rates will hover somewhere around the low six percent range for much of the year. And so if you're waiting for the low fives or five and a quarter, you could be waiting a long time. And so here's the thing, here's the the the better perspective or the question to ask is instead of asking, did I miss the fives, the the better question is does today's payment work for me? And so if the monthly payment fits into your budget and some and you found a home that really meets your needs, the difference between 6.1% and 5.9% really isn't and shouldn't be the deciding factor. And so it might of course it matters, but it might matter a little, but it probably shouldn't be your entire strategy. And something that's very important to remember about mortgage rates, they're not permanent. If rates drop meaningfully meaningfully in the future, you can always you always have the option to refinance and improve the payment, but you can't refinance a home you never bought. Here, here's the thing about the psychology: it's it's natural to want to wait for the best rate possible. Everybody does, but sometimes buyers can be focused on on hitting the perfect rate number before then then then that they overlook the bigger picture. And so a year ago, mortgage rates were well into the 7% range, and today they're hovering in the low sixes. That one percent drop uh we've already seen is actually the real game changer. So for a lot of buyers, that change alone has already improved attainability, affordability significantly. So if you if you pause your home search when rates were higher, this might be a great time to rerun the numbers, not not because the rates are perfect, but because the math might work better than you think. And so we these are conversations. It's not about what you qualify for, it's not what the interest rates are, it's what is best for you and your family with these interest rates. And by the way, about you know, 25 to 30 percent of our sales are purchased with cash, so we still have a lot of cash buyers out there, and and the interest rates not impacting everybody, but certainly impacts the majority of people. And so waiting for that magic number mortgage rate is you know, it might not change your monthly payment as much as you expect. And then waiting for the perfect moment in the market rarely works the way people imagine. It's not about timing the market, uh, whether it's the housing prices, if you're waiting for home prices to come down, just like if you're waiting for interest rates to come down, it's always about what's best for you and your family, uh, what you know, your quality of life, your budget. I mean, there's so many factors. I mean, it could be a because of a job, it could be because of a growing family, or maybe you're retiring, or maybe it's uh uh you're you're having a a family member and uh a parent move in with you. There could be you know kids going off to college. Again, life happens. The the the rates of numbers, of course, all those things are important, but because when life happens, you know, real estate tends to to revolve around that. And and so here's the thing, you might discover the opportunity you you thought disappeared is actually here. Taking a look at the numbers with a fresh eyes. Again, numbers are not the only piece of the puzzle. When we're talking with clients, again, it's it's about what else is what else is going on in life, the bigger picture. And of course, the numbers matter, and it's not the only component. So when we sit down with our clients, whether clients looking to buy or clients looking to sell, it's the and or maybe you're doing both, it's a consultative approach. And we again it's a privilege and honor to help our clients navigate through their whatever their situation is and what might make the most sense, and and putting being the strategists, being the planners, we can be the quarterbacks to help you navigate through it with your lender and the attorneys and the inspections, and again, how this might play into your tax strategy, it might play into your estate strategy, it might play into your uh larger financial strategy. Again, if you're an investor with real estate, if you're a property owner with land, I mean there are other things you might not be aware of. Maybe you and we've talked about this on the radio with our our expertise with 1031 exchanges, working with other investments that might be uh a replacement property that where instead of you managing it, maybe you want to just get the mailbox money. And the biggest thing that we've been able to help our clients uh navigate through with investment real estate is avoiding paying, deferring. You never can avoid taxes, right? Uh taxes and and death are just for all of us. We will face that that. But um, you know, again, navigating uh you can do things smarter and and there's ways to be strategic, and uh you can defer the capital gains. And and then your kids get you know, if kids inherit your real estate, they get the step-up basis, and again, there's strategies that can be incredible for your family's preservation of wealth, and we've helped our clients navigate through that. Again, it could be land, it could be investment real estate, it could be you know thinking through your personal home. I mean, there's so many different strategies, and this is where it's not a just about the the buying and selling of your specific property, it's looking at the bigger picture, and that's where it's a privilege and honor to help our clients navigate through all of that. Um, you can call us directly at 828-393-0134, 828-3930134. I'm gonna be reviewing some of the local numbers here, and you know, average single family home price over the last 12 months, how many homes I've been selling. I mean, can you believe we are uh in our second week of March and life's flying by, but we're having fun and a lot to be grateful for and thankful for. And we love sharing with you about what's going on in the local real estate market. But call us directly, 828-393-0134. Find us online at realestatebygreg.com. Follow us on social media. We podcast all of our radio shows. Uh, but we have uh a short break coming up, so stay tuned in. Uh, we'll be right back. Good morning and welcome back. You're listening to the George Real Estate Group live radio broadcast here on the queue every Monday morning. Thank you so much for tuning in. And it's a privilege and honor to be here sharing with you about what's going on in the market and also put some perspective on the on the housing market. And then sometimes we talk about life and talk about you know different books I'm reading and and things that uh you know, just perspective, right? I mean, just just the uh I mean one of my favorite uh recent books is the atomic habits and just showing up and the the compound effect of of stacking habits and and those little the small habits that we have, compound and the changes that we can make and in the direction and the dreams and goals. They say, I mean, we all have goals and dreams, which is um incredible and important. If you don't have a uh a goal, you don't have you don't know where you're going towards or want to aim towards. But you know this is interesting when you focus on the goal, uh, which that's just one component. Again, you have to have a goal to know where you want to go towards, but it's the stacking of the habits and the patterns that we have in our lives and the systems. I mean, if you want to you know, there's if you have a certain goal you want to reach, again, are the is the choices you make, the daily activities that you're doing, the the are they leading towards where you want to go and the the compounding effect. Again, Atomic Habits is a book I highly recommend. Um, and uh working towards whatever dream and goal you might have, but it's not the dream and goal that's that's not the end-all be-all. You have to have the patterns and the systems and the duplicatable, repeatable, and you're showing up every day. Uh I joke uh I'm an overnight success, it's taking 21 years to show up and and to reach where we're going. And again, we're still growing, we're still we're showing up, and and we love serving our clients and our community through real estate. So if we can help you anyway, we have a lot of experience and knowledge and systems and and we've learned and we keep growing. And so if we can help you anyway, give us a call 828-393-0134, 828-393-0134. I was reading something uh in the morning brew, one of my favorite uh news uh email newsletters that recently made me laugh a little bit, so but also made me stop and think. They said buying a starter home in 2026 is basically like winning an Olympic medal. Not because you get a trophy, because your parents are going to brag about it to all their friends. You know, did you hear my kid bought a house? And honestly, there's a little truth to that. You know, for a lot of younger Americans right now, home ownership feels harder than it used to. And let's talk about the numbers for a second. The median price in the U.S. right now is around$405,000. Back in 2020, it was around$329. So just in a few years, prices moved up roughly$75,000 nationally. But the bigger shift wasn't just prices, it was interest rates. You know, in 2021, the average mortgage rate was around 2.97%. And today, even those are those rates, you know, have we talked about this in the first uh half of the show. I mean, they've dipped under six and then they've come up, but that's still roughly double what buyers saw just a few years ago. And when rates go up, payments go up. The average monthly mortgage payment in the U.S. now is around$23.29, according to Rocket Homes. And two years ago, that payment was closer to 1924. So buyers are facing higher prices and higher borrowing costs at the same time. And there's another big factor happening in the housing market right now. Millions of homeowners locked in and very low mortgage rates before 2022. And some people have mortgage rates in the 2 and 3 percent range. Uh, and so when you have a payment that good, you don't want to give it up. And many homeowners are choosing to stay put instead of selling. Now we've seen that, we've seen that shift. I mean, the the you know, the there are some sellers that say I don't care how good my interest rate is, my life has changed, my dynamics change, my situation has changed, and and so I can't stay locked in. But the economists do call that the lock-in effect. And so because of that, the number of homes changing hands has drop dropped significantly. I mean, even in our local market, I mean, currently, right now, as of this morning, only 431 active single-family homes in the market. So we have low inventory, which you know keeps the demand, which the demand has been steady. I mean, here in Henderson County, we're seeing some 133 average single-family homes a month selling over the last 12 months. But, you know, this is this is interesting. The number of home sale contracts across the United States recently hit a the lowest level since twenty thousand one, according to the National Association of Realtors. So less inventory means prices are staying elevated. And in fact, I mean I I in Henderson County, our average single-family home price in Henderson County is at$541.$541. The average available home price in Henderson County is at$763. That's the average available home price in Henderson County,$763. Another interesting trend is because homes are more expensive, it's taking people longer to save for a down payment. The median age for a first-time homebuyer is now 40 years old. In 2010, it was about 30. So the typical first-time home buyer is a full decade older than they used to be, and that's a big shift. And here's something else even though homes cost more, buyers are often getting less space. The average size of a new home has dropped about 11% over the last decade, while the price per square foot has jumped about 74%, according to Linding Tree. Builders are doing things like reducing hallways and designing more open layouts to control construction costs. Labor is more expensive, materials are more expensive, land is more expensive, and so builders are trying to build smarter and more efficient homes. In fact, we've seen that trend here in Hendersonville, and you see it up in Asheville as well, but they even change the rules with the zoning where you can have small lots and flag lots in the city of Hendersonville. You can somebody that maybe has a one-acre lot in the city of Hendersonville with a you know older home on it, you can actually put in a flag lot where you can have another small home to be built. And they're they're trying to find again, there's different ways. They're trying to find uh affordable, attainable housing. And one of the ways is to loosen up the the rules for subdividing, for for putting a to have a small lot. And so, you know, builders are trying to build smarter and more efficient homes. Now, here's the encouraging part you know, mortgage rates have come down recently, you know, the again compared to a year ago, when they were in the 7% range, now we're in the you know the low sixes, and and we dipped. To the fives, but if they continue to decline, homeowners may decide to list their homes, and that could bring more inventory back to the market. You know, another interesting trend, Generation Z home ownership is actually rising. According to Redfin, about 27% of Gen Z now owns homes, up slightly from last year. Many of them are buying condos or smaller starter homes, which tend to be more affordable. But for some younger Americans, they're also taking a different path. You know, instead of chasing traditional white picket, fenced dreams, they're focusing on other ways to build wealth, like stocks, retirement accounts, even crypto investments, and especially if they have savings, but not quite enough for a down payment. So here's the thing. While those national, those are national trends, every market is different. Right here in Western North Carolina, we're still seeing strong demand for housing. And I've shared that in 2025 we saw a 10% increase for single-family homes uh sold uh in Henderson County versus 2025 versus 2024. Remember, people don't just buy homes because of interest rates. We keep sharing this because this is true. People buy because of life events, marriage, retirement, kids, job changes, moving closer to family. And guess what? Those things are always happening. And so even though the market has changed, home ownership is still very active and alive, and it just looks different than it did a few years ago. You know, we love helping our clients navigate through buying and selling. And so, you know, it's just so fascinating. You know, it's and this is where there's just another piece of this conversation that's so important to talk about is the psychology of the housing market. And so this is where when you're comparing it to this is all about by the way, this is just true in life. When you compare to where you want to be compared to where you've come from, right? This is where the you know, this is where you're comparing. There's a another favorite book of mine called The Gap in the Gain. And people come sometimes they focus on the gap of how far they need to go or where they're still going and how far they've they versus look how far you've come. But you know, a lot of buyers are comparing the market to 2020 and 2021, the mortgage rates were under three percent. Here's the thing, though, that period was actually one of the most unusual housing environments in American history. And think about it, for decades, mortgage rates average closer to six to eight percent. And so when someone says rates are high today, historically speaking, these are actually very normal. And this is what this the difference is our expectations and our perspective. You know, if someone bought a house in 2018 at 5%, they were so happy. If someone bought a house today at 6%, they feel like they missed something, and that's what's called an anchoring effect. We anchor our expectations to a moment in time, and a lot of people have anchored the 2021. Isn't that interesting? Again, the the also we talked about the the lock-in effect. The there's also this thing called the golden handcuffs. Millions of homeowners have mortgages between the 2.5 and 3.5%. So let's say someone owns a home with a$1,500 a month mortgage payment. If they move today, that same home probably would cost them$2,600 a month, and that's a huge jump. So even if they want to move, many homeowners are choosing to stay exactly where they are, and that's why inventory is tight. Not because people don't want to move, but because in some cases, financially, it's just hard to justify giving up a great mortgage. So, but again, let's bring this back to our local market in Henderson County. Even though the national headlines are talking about a slowdown, our local market still has strong demand. And we've talked about this before in the radio show. Again, we are still averaging 130 single-family home homes a month selling locally over the last 12 months. January and February was strong. And there's and currently we're averaging some, there's only some 400 homes in the market, and that's why we still only have a few months of inventory. And so, in real estate terms, we're still considered a tight market. The reason is simple: people want to live here. Western North Carolina is a destination for retirees, remote workers, second home buyers, people relocating from the Northeast and from Florida. And so while the national market may fluctuate, our local demand has remained incredibly strong. And of course, homeownership is so important. This is let's rem this is such an important reminder. If you buy a home, you're not just buying a place to live, you're buying stability. The landlord can't raise your rents. But guess what? When you have a mortgage and a fixed mortgage payment, the payment stays the same for 30 years. And while meanwhile, historically, wages go up, rents go up, home values tend to rise over time. And that's why for many families, a home becomes their largest source of wealth over time, not overnight, but over 10, 20, 30 years. And so this is where, again, this matters. And so this is the here's the thing. This is where, you know, the perspective on the market, the the perspective on the interest rates. And this is where maybe if you're a young person or no young person listening, or your grandson or grandchild, they say they might say, I'll never be able to afford a home. But let me encourage you with this. Every generation has felt that way at some point. In the 1980s, mortgage rates were over 15%. People thought homes were impossible then too. And then over time, markets adjust, interest rates change, incomes grow, opportunity appears, and people find a way. Life keeps happening. And so, yes, uh, when yes, buying a starter home today, as I said earlier, might feel like winning a medal at the Olympics, but it's still happening every day. Families are still buying homes, people are still moving, and for many, home ownership remains one of the most powerful ways to build stability and long-term wealth. I'm so grateful to be here with you every Monday morning right after the nine o'clock hour. Uh, just so much to be grateful for. And if you're thinking of buying, selling, or investing in real estate or a career in real estate, we'd love to have the conversation. We love helping and serving our community. You can call us directly at 828-393-0134. Uh, stop by our office or connect with us on social media or follow us on our podcast. But have a wonderful day, have a wonderful week, and we'll see you next Monday.

Brand Message And Final CTA

SPEAKER_00 29:11

The George Real Estate Group has the experience of selling over 1,200 properties and serving over 1,200 families with their real estate needs in Henderson County and throughout Western North Carolina. The George Real Estate Group is located in Flat Rock, North Carolina, near Hendersonville in Henderson County. You can find them online at realestatebygreg.com. The George Real Estate Group can be reached at 828-393-0134 or stop by their office at 2720 Greenville Highway, Flat Rock, North Carolina. Tune in live each week on Monday mornings at 905 on WTZQ FM 95.3 and 1600 AM, or stream online at WTZQ.com.

SPEAKER_01 30:03

Maybe the house feels a little too big these days. The stairs a little steeper. The pace of life a little too fast. But what if your next move wasn't about letting go? It was about making space for peace, for freedom, for what matters most. At the George Real Estate Group, we understand that real estate isn't just about the house. It's about transitions, timing, and trust. We've helped thousands of families in Western North Carolina make smart, thoughtful moves. Closer to nature, closer to family, closer to home. So when you're ready to rice-size, simplify, or start fresh, we'll be here. The George Real Estate Group. Local, trusted, proven. Call us today, 828-393-0134. Find us online at real estatebygreg.com because your next chapter deserves to feel just right.