Rates are back above 7%, and many Charlotte buyers are wondering whether to wait. We asked our preferred lender, Karen Barnette of Movement Mortgage, for straight answers on rates, first homes and new construction. We chose Karen and her team for their customer service, strong loan programs and responsiveness, and her answers show why.

What you’ll learn from Karen:

• The quick math Karen uses to estimate today’s 30-year rate
• What a half-point rate change really costs you each month
• Why the 20% down rule is a myth, and the NC program many buyers don’t know about
• How buyers of new Hopper homes can walk in needing little more than their down payment
• Why waiting for rates to drop could cost you more, not less
• The one thing Karen says to do this week

1. Tell us a little about yourself and how long you’ve been helping buyers finance homes.

I’ve been a lender for 30 years and was a real estate Paralegal before that. I’m a very experienced lender who is motivated by helping people create wealth through real estate! I’m focused on ensuring the loan product they pick really fits their needs and goals-whether they are short or long term; that will drive the advice on which type of mortgage should be considered. I’m a problem-solver and I consider myself a mortgage financial planner based on your personal circumstance.

Movement Mortgage is the perfect fit for me because we are an Impact Lender. Movement Mortgage commits to prioritizing purpose over profit by investing up to 50% of its corporate profits back into underserved communities to fund public charter schools, infrastructure, and nonprofit grants. Check-out the Movement Schools here in Charlotte…fully funded by Movement!

2. Rates moved back above 7% after the Fed’s September rate hike. What’s driving that, and what does it mean for someone shopping for a home this fall?

Yes, rates are in the low to mid 7’s again. Mortgage rates don’t mirror the Federal Reserve’s short-term rate cuts perfectly; instead, they closely track the 10-year U.S. Treasury yield, which has climbed past 5% (there’s a typical margin of 2% – 2.25% added to the 10 Yr. Treasury and that should put you at a close estimate for the current 30 yr fixed rate).

A combination of resilient inflation, massive debt issuance, and shifting market dynamics have driven these yields, and consequently mortgage interest rates, steadily upward. Once the inflation numbers come down and the cost of oil, we should see mortgage rates come down, too!

3. What are forecasters expecting for the rest of 2026 and into 2027?

The forecast for the rest of 2026 is for rates to remain around 7.4% to 7.5% and the forecast for 2027 is a slightly lower rate of just above the 7.00% range. I love that Hopper takes the current rate environment into account and that is why together we offer the temporary rate buydowns, so that a buyer can have a lower payment while they wait for a refi opportunity. We can also take a look at a 5 or 7 YR ARM (Adjustable Rate Mortgage), which has better pricing and may be a better fit for you.

4. How much does a half-point change in rate really change a monthly payment on a typical home in our area?

Using the example of a $500,000 mortgage, each half-point change in rate would cost approx. $170/month in payment.

5. What’s the very first step a first-time buyer should take, even if they’re a year out?

Let’s have a conversation! It’s never too early to talk to a lender about your plans and your specific financial scenario. The numbers are just as key as picking the correct home, and you can’t get into a home until you explore the numbers to make sure that you fit the loan program parameters and the numbers suit you! I promise that it’s not an overwhelming or scary process…it’s just conversation where you gather info from the lender.

6. Many people assume they need 20% down. What are the realistic down payment options, including any North Carolina assistance programs?

That’s a total myth from long ago. This stems from a type of insurance that a lender secures on a borrower who isn’t putting 20% down called PMI (private mortgage insurance). The stronger your qualifications and credit score, the cheaper the PMI premium. Most borrowers are pleasantly surprised at how low of a cost this can be.

A first-time homebuyer can purchase a home with as little as 3% down monies (conventional loan) or 3.5% down monies (FHA loan) and under the FHA guidelines, it is not just limited to first time home buyers. There is also a Down Payment Assistance Loan through the state of NC that offers $15,000 assistance for borrowers with an income cap (as of 10/26) of $117,000 or under for a family of 2, this program doesn’t require you to be a first-time homebuyer either!

7. What costs beyond the down payment catch first-time buyers off guard?

Usually a buyer has to pay their own closing costs and that could add another $8,000 – $10,000 to out of pocket cost; but the combined incentives that Hopper and Movement offer will cover those closing costs and there is usually residual incentive to cover a buydown to the rate or pre-paying HOA dues for up to a year. There are several ways to use the incentive!

8. What should borrowers avoid doing between application and closing?

Don’t open new credit, make new large purchases on credit or become unemployed/change jobs! Talk to your lender before making any changes to ensure it won’t impact getting your financing!

9. How is financing a new construction home different from buying a resale home?

In my opinion, it’s the best option. In our case, Hopper and Movement are offering incentives to cover your closing cost, so all you need is your down payment! You get a brand-new home with the options that you want! No future renovation projects that sometimes don’t get done on a resale home.

10. Builders often offer rate buy-downs or closing cost help through their preferred lender. How do those incentives work, and how much can they save a buyer?

This is why new construction is such a great way to go! The builder is setting you up well by covering those costs for you. Less, or no, out-of-pocket for closing costs and in most cases getting you a lower interest rate with the remaining incentive.

For example, the 2/1 Buydown starts out 2% lower than current rate for the 1st year and then 1% lower than current rate for the 2nd year. Typically saving you $9,000 – $10,000 across your monthly payments during those 2 years.

11. How does a rate lock work when the home won’t be finished for several months?

Rate locks come in many different lock periods, from 15 days on up to 365 day lock periods. You can lock a rate for a certain lock period and if rates come down before your close date there is a float-down option as a safety net for the extended lock periods. We will stay close and communicate during your build period to make sure we have you covered on locking a rate.

12. What would you say to a buyer who wants to wait on the sidelines until rates come down?

Everyone else is waiting for those rates to drop too, so when rates come down, more buyers are jumping off the fence to buy-that usually means prices go up based on limited amount of inventory with more buyers competing for it. While you wait for a lower rate to save on monthly payment, you could easily pay a higher price for the home due to more competitive buyers driving up prices. You could actually save nothing by waiting. I’ve seen that through many financing/economic cycles over the years.

Becoming a homeowner and starting to build equity in your own home is a much better idea than paying rent – you are paying someone else’s mortgage when you pay rent!

13. If rates fall later, how does refinancing fit in? Is “marry the house, date the rate” realistic advice?

Most borrowers will have a refinance opportunity within a 2-5 year period. I offer a No Lender Fee Refinance for my existing clients who come back to refi with me after a purchase. That should save approximately $1,800 in fees and makes it very affordable to refi later. The Temporary Buydown strategy works great to give you a much lower interest rate for 2 years while you wait for that refi opportunity. “Marry the house, date the rate” is a real thing!

14. If someone reading this is thinking about buying, what’s the one thing they should do this week, and how can they reach you?

Let’s talk! Every person’s scenario is different and I am here to navigate a potential buyer through the financing options to make sure they are considering the best financial tool for their particular scenario. I’m available almost any day or evening. Call/text me and let’s have a 10-minute conversation about your goals! (704) 231-7288 Karen.barnette@movement.com

Ready to make your move?

Browse our available communities in Charlotte, see our Quick Move-Ins, or schedule a tour to find the right fit. Ask about up to $20K in Flex Dollars this fall, including a lender incentive when you finance with Karen at Movement Mortgage (see terms and conditions).

Karen Barnette, Preferred Lender at Movement Mortgage, brings 30 years of mortgage lending experience and began her career as a real estate paralegal. She approaches every loan as a mortgage financial planner, matching each Hopper Communities buyer with the loan that fits their goals, short-term or long-term.