Mortgage interest rates have been stubbornly high for most of 2026. The average 30-year fixed rate was 6.66% on Aug. 27, according to Freddie Mac.
Mortgage News Daily is another reliable source for tracking national mortgage rates. As of Aug. 31, MND data put the 30-year rate at 6.87%, its highest point in over a year.
Do you still want to buy a house in 2026? When it comes to mortgage rates, you have more options than you might think.
“Today’s elevated mortgage rates can be a challenge, but there are still opportunities to lower your borrowing costs and improve affordability,” loanDepot Branch Manager Michael Borodinsky told TheStreet. “If you take the time to explore financing options and negotiate strategically, you may be able to reduce your monthly payment without waiting for rates to fall.”
TheStreet spoke with four mortgage experts about strategies homebuyers can use to lock in lower mortgage rates and costs in the 2026 housing market. Multiple experts suggested the following tactics.
1. Consider an adjustable-rate mortgage
Across the board, the experts we spoke with recommended at least considering an adjustable-rate mortgage (ARM).
“These loans often start with a lower rate than a traditional 30-year fixed mortgage, which can help reduce your monthly payment in the early years of homeownership,” Borodinsky told TheStreet.
For example, Mortgage News Daily also posts rates for 7/6 ARMs. These types of mortgage loans keep your intro rate for seven years, then alter the rate every six months.
While Mortgage News Daily’s 30-year fixed rate was 6.87% on Aug. 31, the 7/6 ARM was 6.42%. For seven years, you could enjoy a mortgage rate that is 0.45% lower — then refinance, sell, or take on a new rate when the intro period expires, depending on whether these options make financial sense at the time.
ARMs can get a bad rap due to the 2008 housing market crash. While many factors contributed to the crash, ARMs played their part.
Related: Will the housing market crash in 2026? Experts weigh in
ARMs appealed to homebuyers for their lower initial rates, but according to a report from the Federal Reserve Bank of St. Louis, mortgage lenders didn’t always fully explain the terms or risks of these loans. So, when the intro-rate period ended and their rates increased, homeowners were financially unprepared.
After the crash, regulations forced lenders to impose stricter underwriting standards for ARMs.
Today’s underwriting and disclosure requirements are different, but an ARM’s inherent interest-rate risk hasn’t disappeared. So it’s crucial to understand how ARMs work and what the terms for your specific loan are.
“If you’re considering an ARM, it’s important to understand when the rate can change, how future adjustments are calculated, and whether the loan aligns with how long you expect to stay in the home,” Borodinsky said. “When used appropriately, an ARM can be an effective tool for managing upfront housing costs.”
2. Shop for the lender with the lowest mortgage rate and fees
The home-buying process is exhausting, and shopping for a mortgage lender can feel like just one more task on your never-ending to-do list. But it’s often a crucial step toward getting the lowest possible mortgage rate.
Acquiring just one additional quote from a lender can save buyers an average of $1,500 over their entire loan term, according to Freddie Mac research. By getting five or more quotes, buyers could save an average of $3,000.
“Always shop around,” Melissa Cohn, Regional Vice President of William Raveis Mortgage, told TheStreet. “Never assume that your bank will have the best rates. Do your research and compare rates to lock in the best rate for you.”
Consider a variety of lender types. For example, you could get quotes from your current bank, a credit union, and a non-bank lender. Then compare their mortgage rates and fees.
More Mortgage Rates:
- Experts predict mortgage rate, housing market shift
- HELOC rates are 7.31%. Why that’s actually good news
- Zillow warns Americans on mortgage rates, housing market
Comparing mortgage lenders is always good advice for homebuyers. But at a time when interest rates show no sign of dropping, using this tactic is especially shrewd.
Sarah DeFlorio, Vice President of Mortgage Banking at William Raveis Mortgage, recommended searching for relationship pricing when deciding which mortgage lenders to add to your list.
“If you are willing to move cash or accounts to another bank, many lenders offer preferred mortgage rates,” DeFlorio told TheStreet. “These relationships can vary anywhere from $50k to $1 million plus, and the rate discount also varies accordingly.”
One example is Chase Bank’s Relationship Pricing Program, which offers a mortgage rate discount of 0.05% to 1%. The total discount depends on whether you’re a new or existing customer and how much money you keep in bank and investment accounts.
3. Ask about temporary mortgage rate buydowns
You may have heard of mortgage discount points, which are “points” you pay for at closing to lower your rate permanently.
But fewer homebuyers are aware of temporary rate buydowns, which lower your rate for up to a few years.
A common type of buydown is a 3-2-1 buydown. In this case, your mortgage rate might be 3% lower in the first year, 2% in the second, and 1% in the third. Once you hit year four, your mortgage rate returns to your predetermined rate.
For example, let’s say your agreed-upon mortgage rate is 6.75%. With a 3-2-1 buydown, your rate would be 3.75% in year one, 4.75% in year two, 5.75% in year three, and 6.75% from year four onward.
Temporary rate buydowns help you gradually adjust to higher monthly payments. And if rates significantly drop by the time it resets to your predetermined rate, you can always refinance into a lower rate. They also typically cost less up front than discount points.
And if you play your cards right, you might not be the one paying up-front fees for temporary rate buydowns at all.
“Ask the lender what would be the maximum dollar amount of a seller credit to a buyer at settlement that could be applied to an interest rate buydown on the loan program the buyer wants,” Corey Burr, senior vice president at TTR Sotheby’s International Realty, told TheStreet. “Once that amount is established, insert that amount into the buyer’s offer to the seller.”
Homebuyers have more power than sellers in many housing markets around the U.S. In this case, you have more negotiating power. You can negotiate for a lower price, closing cost credits — or for the seller to cover part or all of a mortgage rate buydown.
“With some homes staying on the market longer, sellers may be willing to offer concessions to help close the deal,” Borodinsky said.
“In some cases, that assistance may have a greater impact on your monthly payment than a small reduction in the home’s sale price,” he continued.
Waiting for mortgage rates to fall isn’t your only strategy — or even your best one in today’s housing market. Compare lenders, understand alternative loan structures, and negotiate for seller concessions.
