| Published: February 22, 2024

How to Move Forward in a High Interest Rate Market

House with Sold Sign

We know that the market conditions right now are less than ideal for getting a loan. This can be frustrating especially for people looking to buy for the first time or even tenured buyers looking to move to a new location or downsize for the future. As your financial lending experts, we want to provide you with insight and guidance on how to move forward in this market so you can make an informed decision. 

What are the current market trends?

Right now, the mortgage market trends across our area encompass high interest rates and low housing inventory. First time home buyers, people looking to downsize or upgrade, or buyers just looking to move locations may struggle to find properties that meet all of their expectations. With rates determined by the Federal Reserve, there is no telling to how long the market will remain this way, so you may need to get creative, think outside of the box, and perhaps venture down a path that you didn’t mean to go down at first and consider financing options or loan structures that are different than your run of the mill mortgage. 

How do you move forward? What are your options?

Given these trends, it may be hard to find your dream home right now, and it is imperative to be patient throughout the process. Taking your time and talking with a trusted lender will help set realistic expectations and goals when property shopping. Keeping an open mind and exploring all of your options may lead you to more opportunities that you did not consider at the start of your journey. Working with an experienced real estate agent that understands rural home lending is key to a smooth transaction. Working together, your lender and real estate agenda can help you understand specialized properties, appraisals, zoning, etc.

What is a note modification?

Once you finally found the property for you and are ready to consider applying for a loan, knowing the ins and outs of your loan product is key. Farm Credit offers a note modification, or rate reduction option, which means that we will honor a new interest rate if they come down after signing for your loan. Your Farm Credit lender will analyze the change before making it permanent to ensure it makes sense for you and your situation. It also means that your interest rate is locked in and can never go up again, even when rates are increasing.* Another benefit to a note modification is that is does not require refinancing or closing costs again, but instead it is changed with one flat fee. 

Trusting Farm Credit as a partner

When searching for a home, you want to connect with someone that will listen to your wants, needs, and concerns. The first step should always be to discuss your dream and what your intentions are with the home or land you are looking to buy. This can help your lender figure out the best loan product for you and the terms that are going to set you up for success. 

In longer term loans, the note modification option Farm Credit offers is a great way to save money over the years. We have specialized tools that will break down those savings when rates drop to ensure it makes the most sense for you. Farm Credit’s lending options are unique, and we boast a network of referral partners to tap into when extra financing support is needed. 

With higher rates, it can be a challenge qualifying for the home you need. Farm Credit looks at your financial statements to make sure all income is accounted for, including money earned by side jobs or overtime income. Farm Credit understands buying and selling rural properties and your local lender is ready to help you discuss your best lending options. 

As you can see, Farm Credit has your best interest (ha ha) when it comes to searching for the perfect property for you and your family. We care about your success and want you to feel supported every step of the way. Click the link below to be contacted by one of our lenders who can help you get started! 


*This applies only to fixed rate options.

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