re: Average mortgage rates now at 7.5%

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It’ll be worth it but I’ll be itching to refinance the second rates do come down

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Mortgage rates aren't going below 5% until the 10yr yield gets back down around 3%-3.5%.

The 10yr isn't yield isn't going that low until we see at least some of the following:

-some form of fiscal responsibility from Congress to reign in deficit spending (not going to happen)
-a surge in foreign purchases, boosting demand (can happen, but will likely become more and more influenced by the previous point)
-a significant multi-quarter slowdown in manufacturing and consumer spending (ie: GDP slowing, possibly even a light recession - at this point this primarily depends on how long the Iran/Hormuz issue lasts)
-job losses (see above)
-EFFR cut back down (probably into the 2%-2.5% range, will likely not happen until inflation has been down around/below the 2% target range for at least 3-6 months and looks to be stable at that level)
-fuel prices plummet due to the Iran/Hormuz issue getting resolved (no eta yet, but hopefully soon)

The Iran deal (both the reality and the hype) has the greatest potential to continue or resolve the issue. The sooner a deal is reached, the better.

All that said, if we get an Iran deal by the end of November, you're probably still going to have to buy with a 6%-7% rate but the deficit issue (more pointedly, the compounding effect due to inflation) is likely to keep rates above 5% for a very long time.

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Only prices that will significantly drop will be those in a rush to sell. If any market drop occurs, it’ll only be temporary until rates drop and they’ll recover. The supply isn’t there to drop prices drastically.

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I'm renting, and looking for the right time to buy. I will be a cash buyer, so I'm not worried about interest rates for me.

What I see in South Florida:

1.) Prices are all over the place. In the same neighborhood, I see a house for $800k and a very similar house a block or two away for $550k. One is a seller who believes their house is worth top dollar from 2 years ago, and the other is a motivated seller. So bargains are out there.

2.) I see a lower than normal inventory, and it is my understanding that people are waiting before putting their house on the market. That could be because they want interest rates to come down before buying a new house, or it could be that they are not getting the price they want out of their current house.

3.) I see a lot of houses going on the market and then getting pulled off the market after a month or two. I believe these are people who are waiting for a better time to sell, or are willing to rent their home out for a year or so before selling.

4.) This is from my realtor, but the buyers are being picky, and the houses that are selling are the ones that have been tastefully updated and are turnkey. They are no longer selling everything at listing or above, like they did 3 years ago. Today, the buyers are wanting either a bargain, or something they can move into without touching a thing.

Altogether, prices are coming down, but if you have a luxury home in the $2M plus range, prices are pretty stable, as long as you have a newer or recently renovated home. Luxury fixer uppers are commanding some of the steepest discounts, though.

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What I see in South Florida:

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True South Florida or Jax area? Based on your username, I wouldn’t call Jax South Florida though.

Actual S Florida has the home insurance issues that most of the country does not have, and is likely putting much more pressure on the market there

Excited for my property taxes to be lower this year.

I agree. When you look at the numbers the money borrowed is much more important than the rate. So for someone like myself in the market sitting on what I would consider a decent down payment ( at least for me), I would much prefer a house $100 less with a 7.5% vs 100k more at 5.5%.
I want to borrow the least amount as possible.

This would work for me.

I bought my house at 5.85% and people told me I was an idiot after rates were down to 2.5-3%.

Buy the house you can afford at the time you can afford it.

(Double post)