Why today’s mortgage rates matter—but shouldn’t make the decision for you.

If you’ve been paying attention to the housing market lately, mortgage rates are once again dominating the conversation.

That’s understandable. When mortgage rates rise, monthly payments rise. Buyers can lose purchasing power. Homeowners with existing low-rate mortgages become even more reluctant to move.

According to Freddie Mac’s Primary Mortgage Market Survey, the average 30-year fixed-rate mortgage reached 7.28% as of October 1, 2026, up from 7.03% the previous week and 6.95% two weeks earlier.

Those numbers matter.

But I think there’s a danger in allowing one number—even an important one—to make an entire real estate decision for you.

The better question isn’t simply:

“Are mortgage rates too high to move?”

It’s:

“Given today’s market, my finances and what I’m trying to accomplish, does making a move still make sense for me?”

Those are two very different questions.

Should I Wait for Mortgage Rates to Come Down Before Buying a Home?

I hear variations of this question all the time.

Nobody wants to take out a mortgage at 7% if they believe they can wait and get one at 6%, 5% or even lower.

The problem is that none of us knows exactly where mortgage rates will be six months or a year from now.

And while you’re waiting for rates, other things can change.

Home prices can rise or fall. Inventory can improve or tighten. Your income and financial circumstances can change. The particular house or neighborhood you want may become more—or less—affordable.

That’s why I think prospective buyers should begin with affordability rather than a prediction.

Can you comfortably afford the right home under today’s conditions?

And just as importantly:

Would owning that home improve your situation enough to justify the cost?

If the answer is no, don’t force the purchase.

But if the answer is yes, today’s mortgage rate becomes one part of a much larger decision.

What If I Already Have a 3% or 4% Mortgage?

This may be an even more difficult question for existing homeowners.

Millions of homeowners obtained mortgages during periods when rates were considerably lower than they are today.

If that’s you, giving up a 3% or 4% mortgage can understandably feel like giving up something extremely valuable.

Because you are.

But here’s where the decision gets more complicated.

A great mortgage doesn’t necessarily mean the house is still great for your life.

Maybe you’re approaching retirement and don’t need as much house anymore.

Maybe the stairs are becoming difficult.

Maybe property maintenance is becoming burdensome.

Perhaps you need to be closer to children or grandchildren.

Maybe you’re going through a divorce or another significant family change.

Perhaps your financial circumstances have changed.

Or maybe the house that made perfect sense 15 or 20 years ago simply doesn’t fit the life you’re living today.

Your low mortgage rate absolutely belongs in that calculation.

But so does everything else.

Should Higher Mortgage Rates Stop Me From Selling?

Not necessarily.

For a homeowner, the decision to sell shouldn’t begin and end with the mortgage market.

It should begin with:

What happens after I sell?

Consider two very different homeowners.

One sells a $700,000 house and purchases another $700,000 house using substantial financing.

The other sells a $700,000 house, has significant equity and downsizes into a $450,000 condominium.

Those homeowners are operating in exactly the same mortgage-rate environment—but the financial impact of today’s rates could be completely different.

The same applies to someone who plans to sell and rent, relocate to a less expensive area, purchase with cash, move closer to family or transition into some other housing arrangement.

That’s why blanket statements like “It’s a terrible time to move because rates are high” aren’t particularly useful.

The right answer depends upon the homeowner.

Before Asking “Is This a Good Time to Sell?” Ask Three Questions

When I sit down with homeowners who are considering a significant real estate decision, I think it’s useful to separate the conversation into three parts.

1. Should I make a change?

This comes before the market analysis.

What are you trying to accomplish?

Has the house become too expensive, too large or too difficult to maintain?

Are there accessibility concerns?

Has your family situation changed?

Would moving improve your finances?

Would another housing arrangement improve your quality of life?

We need to understand the problem before we can decide whether selling the house is the solution.

2. If I make a change, where am I going?

This question is sometimes overlooked.

Selling a house is one transaction.

Figuring out where you’re going next is a life decision.

Maybe that’s another single-family home.

Maybe it’s a condominium, one-level home, 55+ community or rental.

Maybe you’re relocating to another state or moving closer to family.

And sometimes exploring those options reveals that staying exactly where you are is actually the better choice.

3. When should I make the change?

Now we can start talking seriously about market conditions.

What is your current home worth?

How much do you owe?

How much equity would you have after selling expenses?

What would the next property cost?

How much would you need to borrow?

What would your new monthly housing expense look like?

And, yes:

What are mortgage rates?

The market belongs in the conversation.

I just don’t believe it should automatically control the conversation.

Sometimes the Best Advice Is: Don’t Sell Yet

That may sound like a strange thing for a REALTOR® to say.

But I believe there are situations where the appropriate advice is:

Don’t move yet.

Maybe the numbers simply don’t work.

Perhaps the right replacement property isn’t available.

Maybe relatively modest modifications to your existing home could solve the problem you’re trying to address.

Perhaps six months of additional preparation would put you in a much stronger financial position.

Or perhaps you’re simply not ready.

That’s okay.

I don’t believe my job is to convince every homeowner I meet to put a For Sale sign in the front yard.

My job is to help people understand their options so they can make a good real estate decision.

Sometimes that results in a transaction.

Sometimes it results in a plan.

And sometimes it results in deciding to stay put.

Don’t Just Ask What Your House Is Worth

One of the first questions homeowners naturally ask is:

“What could I sell my house for?”

That’s certainly important.

But I think we need to go farther.

Suppose your house could sell for $600,000.

Great.

Now let’s determine:

What do you owe?

What are the likely costs associated with selling?

How much equity will you actually walk away with?

Where will you live afterward?

What will that cost?

Will you need another mortgage?

How much will you need to borrow?

What will your new monthly housing expense be?

And then comes the question I care about most:

When everything is finished, are you financially and personally better off than you were before?

That’s a much more useful measure of a successful real estate decision than the selling price alone.

Rates Change. Good Decision-Making Doesn’t.

Mortgage rates will change again.

They always do.

Home prices will change.

Inventory will change.

Economic forecasts will change.

And there will always be another headline telling homeowners that now is either the perfect time or the worst possible time to make a move.

Your individual circumstances matter more than the headline.

Your home is part of your finances, your family, your lifestyle and whatever chapter of life comes next.

So if you’re wondering whether today’s mortgage rates mean you should buy, sell, downsize, relocate—or remain exactly where you are—I wouldn’t begin by asking:

“Where are mortgage rates going?”

I’d begin somewhere else:

“What are you trying to accomplish?”

Once we understand that, we can evaluate the house, your equity, the market, financing and the available alternatives together.

And then we can determine whether making a move actually makes sense.

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Thinking About a Change? Start With a Conversation.

You don’t have to decide that you’re selling your home before talking with a real estate professional.

If you’re considering buying, selling, downsizing, relocating or simply wondering whether your current home still makes sense for the next chapter of your life, I’m happy to help you work through the options.

No pressure to sell. No predetermined answer. Just a conversation about what makes sense for you.

Joe Luca, REALTOR®
CIPS • SRES® • MRP • ABR®
RE/MAX Preferred

If you own a home in Rhode Island, chances are you’ve received one.

A postcard.

A letter.

A text message.

Maybe even a phone call:

“We want to buy your house for cash.”

The pitch can be appealing: no repairs, no showings, no open houses, no waiting for a buyer to obtain financing, and potentially a very quick closing.

For some homeowners, that may be exactly what they need.

But before accepting a direct cash offer, there is one important question you should answer:

What could my house sell for AS-IS on the open market?

That doesn’t mean you shouldn’t sell to a cash buyer.

It means you should understand what you’re potentially exchanging for the convenience of that sale.

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What Rhode Island Property Transactions Can Teach Us

Recent research into Rhode Island property records provides some interesting examples of why homeowners should obtain an independent opinion of value before accepting a direct investor offer.

Consider these transactions:

47 Denver Avenue, Cranston

Property-record research shows transactions involving the property on May 23, 2025 at:

$150,000 → $265,000

That’s a difference of $115,000, with both transactions reportedly recorded on the same date.

That does not mean someone made a $115,000 profit. Transaction structures, expenses, contractual arrangements and other costs can affect the economics considerably.

But if you’re the homeowner considering the $150,000 sale, wouldn’t you want to understand the reason for that difference before signing?

32 Vallone Road, Cranston

The recorded progression provided in the research was:

$230,000 → $285,000

The transactions occurred approximately nine days apart.

Difference: $55,000.

Again, the difference between two recorded prices should not be confused with profit.

The important question for the original homeowner is simpler:

What was the property worth in its existing condition at the time it was sold?

7 Nancy Street, Coventry

The transaction history provided shows:

$200,000 → $255,700 → $373,000

The first two transactions occurred approximately 37 days apart. The property was subsequently improved before the later $373,000 sale.

That distinction matters.

A renovated home and an unrenovated home are not necessarily comparable products. Renovations require money, time and risk.

But the transaction still illustrates why homeowners should understand the difference between three very different numbers:

1. An investor’s purchase offer.
2. The home’s potential as-is open-market value.
3. The property’s potential value after renovation.

Those numbers can be substantially different.

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More Rhode Island Examples

Other transaction research provided to me included:

92 Mohawk Trail, West Greenwich

$168,000 → $280,000 → $440,000

The final sale occurred after the property had been improved.

18 Alexander Avenue, East Providence

$255,000 → $333,000 → $460,000

Again, the final transaction followed improvements to the property.

16 Bowdoin Street, Providence

$90,000 → $124,700

Approximately 26 days separated the reported transactions.

22 Gooding Street, Pawtucket

$260,000 → $378,000 → $650,000

The property subsequently underwent renovation before the final sale.

173 Kenyon Avenue, Pawtucket

$450,000 → $660,000

Approximately seven months separated the reported purchase and resale.

These examples shouldn’t be used to determine how much an investor earned.

We don’t know that from sale prices alone.

Investors can incur renovation costs, financing charges, taxes, insurance, utilities, legal expenses, commissions, carrying costs and other expenses. They also take financial risk.

Instead, these transactions demonstrate something much more useful to homeowners:

Different buyers can place very different values on the same property.

And that is exactly why obtaining an independent opinion of value can be so important.

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Cash Buyers Aren’t Necessarily the Bad Guys

It’s important to be fair about this.

Real-estate investors provide a legitimate service.

An investor may be willing to purchase a property:

• In its current condition
• Without requiring the seller to renovate
• Without traditional marketing
• On a potentially accelerated timeline
• With fewer logistical demands on the homeowner

That convenience can have substantial value.

Imagine an elderly homeowner who has lived in the same house for 40 years.

The basement is full.

The attic is full.

The kitchen hasn’t been updated since the 1980s.

The landscaping has become difficult to maintain.

Her husband has passed away and she’s ready to move into something smaller.

Someone offers to buy the house exactly as it sits.

That could be an enormous relief.

Or consider a family that has inherited a house after a parent dies.

The children live in three different states.

Nobody wants to manage contractors or spend months renovating the property.

A direct cash sale could solve a very real problem.

The same can be true during divorce, financial difficulty, landlord burnout or other major life transitions.

Sometimes certainty and convenience are worth money.

The homeowner simply needs to know how much.

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You Don’t Have to Renovate Your House to Sell It

This is where many homeowners misunderstand their options.

They assume they have two choices:

Option 1: Spend tens of thousands of dollars renovating the house.

Option 2: Sell directly to an investor.

There is often a third option:

Sell the property AS-IS on the open market.

Homes don’t have to look like television showpieces to sell.

Buyers purchase homes with:

• Dated kitchens
• Older bathrooms
• Worn flooring
• Deferred maintenance
• Older roofs and mechanical systems
• Significant cosmetic work
• Belongings that still need to be removed
• Renovation needs

Some buyers specifically want those properties.

Contractors buy them.

Investors buy them.

Owner-occupants buy them.

Buyers who are handy buy them.

And exposing the property to multiple potential buyers introduces something a single unsolicited offer cannot:

Competition.

One buyer tells you what that buyer is willing to pay.

The open market can help reveal what multiple buyers may be willing to pay.

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Don’t Compare Offer Price to Sale Price

Suppose an investor offers you:

$300,000 cash.

After analyzing comparable properties, a REALTOR believes the house could potentially sell as-is for approximately:

$350,000.

That doesn’t automatically mean listing the house puts another $50,000 in your pocket.

There are selling expenses to consider.

Instead, you should compare:

NET TO NET.

Your analysis might look something like this:

Direct Cash Sale

Offer: $300,000

Less any costs required under the particular agreement.

Estimated seller proceeds: $X

As-Is Open-Market Sale

Estimated selling price: $350,000

Less estimated brokerage compensation, attorney expenses, applicable taxes and fees, negotiated credits and other transaction costs.

Estimated seller proceeds: $Y

Now you have something meaningful to compare.

If the difference is $5,000, the speed and convenience of the cash offer might be extremely attractive.

If the difference is $25,000, you’ll have a decision to make.

If the difference is $75,000 or $100,000, you may view that convenience differently.

There is no universal answer.

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Price Isn’t the Only Consideration

A good comparison should also consider factors that don’t fit neatly into a calculator.

How quickly do you need to close?

Does the property need to be emptied?

Will the buyer require financing?

What inspection or due-diligence provisions are involved?

What repairs, if any, will be expected?

How certain is the transaction?

How stressful will each option be?

And perhaps most importantly:

What’s happening in your life?

Selling a home is often connected to something else.

Retirement.

Downsizing.

Divorce.

Death of a spouse or parent.

Relocation.

Financial difficulties.

A growing family.

Health or mobility changes.

Those circumstances matter.

The option that produces the highest theoretical price isn’t automatically the option that’s right for you.

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Before You Sign, Get a Second Opinion

If you’ve received a cash offer for your Rhode Island home, you don’t necessarily need to reject it.

You also shouldn’t automatically accept it.

Instead, consider getting an independent analysis before signing.

Ask for:

• A comparative market analysis
• An estimated as-is market value
• A realistic assessment of whether repairs are worthwhile
• An estimated seller net sheet
• A comparison of the likely timeline and conditions
• A side-by-side comparison with your cash offer

Then ask the most important question:

Which option makes the most sense for me?

Sometimes the answer may be the cash buyer.

If it is, great.

You’ll be making that decision knowing what your alternatives were.

Other times, exposing the property to the open market could potentially result in substantially greater proceeds.

You’ll know that, too.

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Your Equity Took Years to Build

For many homeowners, home equity represents decades of work.

Mortgage payments.

Property taxes.

Repairs.

New roofs.

Heating systems.

Windows.

Maintenance.

And years of ownership.

You don’t necessarily need to squeeze every possible dollar out of your property when you sell.

Convenience, certainty and simplicity have value, too.

But you should understand the value of what you own before deciding what you’re willing to accept for it.

Don’t automatically reject the cash offer.

Don’t automatically accept the cash offer.

Understand the cash offer.

Know your home’s potential as-is market value.

Know your estimated net proceeds.

Understand your alternatives.

Then make the decision that’s right for you.

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Received a Cash Offer for Your Rhode Island Home?

If you’ve received a letter, postcard, text or phone call offering to buy your house for cash, I’m happy to help you evaluate it.

We’ll look at what your property could reasonably sell for in its present condition, estimate the expenses associated with an open-market sale, and compare the estimated proceeds with the cash offer you’ve received.

If the cash offer makes sense, I’ll tell you.

If the numbers suggest another option deserves consideration, you’ll know that too.

No pressure. Just information to help you make a good decision.

Joe Luca, REALTOR
RE/MAX Preferred

Rhode Island Real Estate With Joe Luca

By Joe Luca, REALTOR® | The Rhode Island Homeowner Insider

Most homeowners probably don’t spend much time thinking about their homeowners insurance.

You buy a policy when you purchase the house, the premium gets paid every year—often through your mortgage escrow account—and unless something goes wrong, you may rarely look at it again.

But that can be a mistake.

On this week’s Joe Luca Real Estate Show, I sat down with insurance professional Jason Zeramby of Comparion Insurance Agency to talk about homeowners insurance and some of the issues Rhode Island homeowners should be thinking about before they ever have to file a claim.

The conversation reinforced something I talk about frequently with homeowners:

Owning a home isn’t simply about buying and selling real estate. It’s about protecting the home, the equity you’ve built, and the financial life surrounding it.

Here are several important takeaways Rhode Island homeowners should consider.

1. Your Home’s Market Value Is Not the Same as Its Replacement Cost

This is one of the most important distinctions for homeowners to understand.

If your home could sell today for $500,000, that does not necessarily mean it should be insured for $500,000.

Homeowners insurance is generally concerned with the cost of rebuilding the structure, not what a buyer would pay for the property on the open market.

Those numbers can be very different.

The Rhode Island Department of Business Regulation’s consumer guidance recommends that dwelling coverage reflect the full replacement cost of the home and that homeowners periodically review that amount.

Why?

Construction costs change.

Labor costs change.

Material costs change.

And improvements you make to your home can change what it would cost to rebuild it.

A policy that was appropriate several years ago may not necessarily provide the protection you expect today.

Homeowner takeaway: Ask your insurance professional whether the replacement-cost assumptions on your current policy still make sense.

2. Don’t Assume Everything Is Covered

A homeowners policy provides significant protection, but it doesn’t protect against every possible loss.

Typical homeowners coverage can include protection for the dwelling, other structures, personal property, additional living expenses following certain covered losses, personal liability and medical payments.

But coverage depends upon the policy and the cause of the loss.

One particularly important example for Rhode Island homeowners is flooding.

Standard homeowners insurance does not cover flood damage.

And living outside a designated high-risk flood zone doesn’t necessarily mean there is no flood risk.

Rhode Island has coastal communities, rivers, low-lying areas and neighborhoods that can experience significant water problems during severe storms.

Homeowner takeaway: Don’t ask only, “Do I have homeowners insurance?”

Ask:

“What am I actually covered for—and what am I not covered for?”

That is a much better conversation to have before a storm or loss occurs.

3. Understand Your Deductible Before You Have a Claim

Your deductible is the amount you are responsible for before insurance begins paying a covered claim.

Many homeowners know they have a deductible but may not remember exactly what it is.

There can also be circumstances where different deductibles or policy provisions apply to particular types of losses.

Pull out your policy and ask your insurance professional to walk you through it.

You should understand:

Your regular deductible

Whether any separate storm-related deductibles apply

Your dwelling coverage

Personal-property coverage

Liability protection

Loss-of-use coverage

Important exclusions or limitations

Insurance shouldn’t be something you first learn how to use after something happens.

4. Your Home Changes—and Your Insurance May Need to Change With It

Think about what you’ve done to your home since you purchased it.

Did you finish the basement?

Add a deck?

Renovate the kitchen?

Replace major systems?

Build a shed or detached structure?

Make a significant addition?

Buy expensive jewelry, collectibles, electronics or other personal property?

Changes to the property or your possessions can affect your insurance needs.

This is one reason an occasional insurance review makes sense.

Your house isn’t frozen in time, and your insurance shouldn’t be either.

5. Don’t Shop on Price Alone

Everyone wants to save money, and there is nothing wrong with comparing insurance premiums.

But the least expensive policy isn’t automatically the right policy.

A better question is:

What protection am I receiving for the premium I’m paying?

Two policies that appear similar at first glance can contain different deductibles, limits, endorsements and exclusions.

Saving a few dollars isn’t much of a bargain if you discover after a major loss that the coverage isn’t what you thought it was.

Price matters.

Coverage matters more.

6. Insurance Should Be Part of the Conversation When You’re Buying a Home

For buyers, homeowners insurance shouldn’t be treated as an administrative item that gets handled at the last minute before closing.

The characteristics of the property can affect insurance availability and cost.

That’s particularly important when considering older Rhode Island housing stock.

Before purchasing a property, buyers should be thinking about the home’s age and condition, including major systems and components, and should speak with an insurance professional early enough in the process to identify potential concerns.

That doesn’t mean an older home is a bad home.

It means buyers should understand the total cost and responsibility of ownership, not simply the mortgage payment.

7. Do an Annual Homeowner Insurance Checkup

One of the simplest ideas from our conversation is also one of the most useful:

Review your homeowners insurance periodically instead of putting the policy in a drawer and forgetting about it.

A good annual conversation with your insurance professional might include questions such as:

Has my replacement cost changed?

Have construction costs affected the amount of coverage I need?

Are there exclusions I should understand?

Should I consider flood insurance?

Are my liability limits appropriate?

Have improvements to my property changed my insurance needs?

Are there endorsements or additional coverages I should consider?

Are there legitimate opportunities to reduce my premium without sacrificing important protection?

You don’t necessarily need to change anything.

The purpose is simply to know what you own and understand how you’re protected.

Meet This Week’s Guest: Jason Zeramby

I want to thank Jason Zeramby of Comparion Insurance Agency for joining me on The Joe Luca Real Estate Show and helping us break down homeowners insurance from the homeowner’s perspective.

One of the reasons I enjoy bringing professionals like Jason onto the show is that real estate doesn’t exist in a vacuum.

Homeowners eventually need good people around them—insurance professionals, lenders, attorneys, contractors, accountants, financial professionals and other specialists who can help them make informed decisions.

My job isn’t to pretend to be the expert in every one of those areas.

My job is to bring knowledgeable people into the conversation and ask the questions homeowners should be asking.

That’s also a big part of what we’re building through the Rhode Island Homeowner Insider (RIHI): a trusted local network and educational resource designed to help Rhode Island homeowners find information and connections when they need them.

The Bigger Picture: Protect the Home You’ve Worked Hard to Own

For most families, their home is one of their largest financial assets.

But it’s also much more than an asset.

It’s where families are raised, memories are created and, over time, equity is built.

That’s why I believe being a good homeowner requires occasionally looking beyond today’s mortgage payment or today’s market value.

Ask yourself:

If something happened to my home tomorrow, do I understand the protection I have today?

If you don’t know the answer, that’s a good reason to schedule a conversation with your insurance professional.

And if you’re thinking about buying, selling, downsizing, moving up, investing, or simply trying to understand what your home is worth and what your options are, I’m always happy to have a conversation.

Have a Rhode Island Real Estate or Homeownership Question?

I’m Joe Luca, REALTOR®, and my goal is to help Rhode Island homeowners make informed decisions—not just when they’re ready to buy or sell, but throughout the years they own their homes.

You can follow The Joe Luca Real Estate Show, the Rhode Island Homeowner Insider, and Cup of Joe Luca for practical conversations about real estate, homeownership, financing, insurance, home improvement and the issues that affect Rhode Island homeowners.

Have a question or a topic you’d like us to cover? Reach out. Your question may become the subject of a future show or article.

Joe Luca, REALTOR®
RE/MAX Preferred
The Joe Luca Real Estate Show
Rhode Island Homeowner Insider