With mortgage rates sticking above 7%, many in Baltimore are feeling the weight of higher borrowing costs and wondering how to make the numbers work. As someone who helps buyers at every stage—first-timers, investors, new arrivals, and longtime residents alike—I know these moments can feel uncertain. A recent study offers a smart strategy: if you’re planning ahead, consider building a rate cushion—think about budgeting for a half-point increase over 3 months, three-quarters by 6 months, and a full point within a year.
There’s a silver lining, though. Buyers in the later months of the year often find that typical home prices drop about 5% from late spring to early fall, with fewer folks competing and more space to negotiate. Last month, with around a 5-month supply of homes, buyers gained more leverage—whether that means negotiating on price, closing costs, or even exploring options like discount points or temporary rate buydowns.
If you’re still weighing your options, recent market moves suggest the Fed may tighten further, but the long game is still cooling inflation—which could bring mortgage costs down in the future. Baltimore’s market keeps shifting, and having a clear-eyed plan makes all the difference.
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