Douglas Hoven: Navigating Virginia’s High-Rate Housing Market

When Norfolk residents Sarah and James set out to move closer to James’s new engineering job in Newport News, they expected to trade up from their 1,600‑square‑foot ranch. But when their lender quoted payments on a $450,000 house at more than , the couple realized the numbers didn’t add up. calls the region’s own “ six‑percent”We refinanced to three percent in 2021,” Sarah said. “ Doubling our rate just to gain a spare bedroom didn’t make sense.” That calculation is familiar across Hampton Roads. Homeowners who locked in rock‑bottom rates during the pandemic are now reluctant to sell, creating what local agent great pause.” Hoven, a former Navy submariner turned Realtor on RE/MAX Prime’s Ron Sawyer Team, says the only way forward is to embrace the market as it is and get creative. Douglas Hoven

Why can’t we count on cheaper money?

The broader economic backdrop offers little hope for a return to three‑percent mortgages. J.P. Morgan analysts predict that 30‑year fixed rates will average around 6.7% through mid‑2026, while home prices grow a modest 3% annually. In other words, rate relief will be modest at best. “We can’t wish the old rates back; we have to deal with the rates we have, and structure deals that make sense,” Hoven said. Rather than waiting for a rate collapse that may never come, he advises buyers and sellers to learn about financing tools that can help them manage higher rates.

Temporary buydowns: a bridge over rough waters

A temporary buydown allows a buyer to ease into higher payments by reducing the mortgage rate for the first few years. A seller or builder pays a lump sum at closing, cutting the rate by two percentage points in year one and one point in year two. On a $400,000 loan at 6.7%, that could reduce payments by several hundred dollars in the early years, giving buyers breathing room until they can refinance. Hoven says buydowns are particularly useful when a listing has lingered, and the seller has enough equity to absorb the cost. “These strategies aren’t for everyone, but they can bridge the gap until rates come down,” he explained. Buyers considering a buydown should be confident they’ll refinance or sell before the rate resets.

Adjustable‑rate mortgages: only with a plan

Another lever is the adjustable‑rate mortgage (ARM). ARMs start with a lower introductory rate than a 30‑year fixed loan, typically for five or seven years. For households whose jobs or life stages mean they may move again in a few years-a Navy family awaiting transfer orders from Naval Station Norfolk, for example-an ARM can provide temporary relief. Hoven discusses ARMs with clients who have clear plans and financial cushions. He also notes that some buyers can assume a seller’s existing mortgage if the loan allows it, effectively “ borrowing “ the seller’s low rate. But he warns that ARMs carry risk: if rates stay high or home values stagnate, the payment could jump when the introductory period ends. Anyone pursuing an ARM should model worst‑case scenarios and have an exit strategy.

Negotiating concessions: more than just price

Sometimes the smartest way to make a deal work is to negotiate the seller’s closing costs. Seller concessions -credits toward closing costs, prepaid taxes, or escrow fees-can save buyers thousands without forcing a deep price cut. Hoven has recently brokered deals in which sellers agreed to pay a year of homeowners’ association dues or to contribute funds for the buyer to purchase mortgage points. These incentives cost the seller only if the transaction closes, making them more palatable than lowering the list price. Knowing what each party values is key: would the seller rather replace a dated roof or pay to buy down the buyer’s rate? An experienced agent can craft an offer that aligns with both sides’ priorities.

Prepare, then practice patience

Even with creative financing, the 2026 market rewards those who are financially prepared and realistic. Lenders are scrutinizing debt‑to‑income ratios more closely than they did a few years ago. Hoven urges prospective buyers to improve credit scores, pay down high‑interest debt, and build cash reserves so they’re ready to act when the right property comes along. For sellers, he recommends pricing homes based on recent comparable sales, sprucing up curb appeal, and servicing HVAC systems to ensure a smooth inspection. Overpriced homes sit; well‑maintained, reasonably priced properties still attract offers even in a high‑rate environment.

Ultimately, Hoven views real estate as a hedge against inflation and a long‑term wealth builder. He counsels buyers and sellers to stay flexible, study neighborhood data, and focus on what they can control. Sarah and James took that advice to heart. Rather than stretching for a mortgage they couldn’t afford, they decided to stay put for now. They refinanced their car loan, boosted their savings, and spent weekends touring new subdivisions in Chesapeake and Suffolk, comparing builder incentives and rate buydown offers. “ Doug showed us we don’t have to force it,” Sarah said. “We’ll move when the numbers work for us.”

This article is for informational purposes only and does not constitute financial advice. Buyers and sellers should consult with professional lenders, real estate agents, and attorneys to understand their specific situation.

Originally published at https://www.thehypemagazine.com on February 17, 2026.