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An Honor That Belongs to My Clients
I’m Mukaram Ghani, and in 2025 I was named a RE/MAX Torchbearer, one of the top real estate agents under 40 across the U.S. and Canada. RE/MAX selects Torchbearers based on transaction sides and gross commissions for the prior year, grouped by state or province. You can see the full list here: 2025 Torchbearers: RE/MAX Announces Top Agents Under 40.
This recognition really belongs to the buyers, sellers, and families who trusted me with one of the biggest decisions of their lives. After 15 years in Northern Virginia real estate, the best way I know to say thank you is to keep giving straight, useful advice.
So let’s talk about what’s happening right now.
Why Mortgage Rates Just Crossed 7%
Two things happened in the past few weeks that every buyer and seller should know about.
The Fed raised rates. On September 16, the Federal Reserve raised its benchmark interest rate by a quarter point, to a range of 3.75% to 4%. It was the Fed’s first increase since 2023, driven by inflation that is still running above its 2% target. Fed officials also signaled that one more increase could come before the end of the year.
Mortgage rates followed. As of October 1, the average 30-year fixed mortgage rate was 7.28%, according to Freddie Mac. That’s up from 7.03% the week before and 6.34% a year ago, and it’s the highest level since 2023.
A Quick Explainer: The Fed Doesn’t Set Mortgage Rates
This surprises a lot of people. The Fed sets a short-term rate that banks charge each other. Mortgage rates track something else: the 10-year Treasury yield, which moves with investors’ expectations for inflation and the economy. When the Fed signals it’s worried about inflation, those yields often rise, and mortgage rates rise with them.
What That Means in Dollars
On a $500,000 loan, a 7.28% rate means a principal-and-interest payment of about $3,421 a month. At last year’s 6.34%, that payment was about $3,108. That’s roughly $313 more every month for the same loan. Want to run your own numbers? Try our mortgage calculator.
Mortgage Rates, Inflation and the Fed’s Rate Since 2008
Yearly averages for mortgage rates and inflation; Fed rate at year-end (top of its target range).
Northern Virginia Is Telling Its Own Story
National headlines don’t always match what’s happening here. In August, according to the Northern Virginia Association of Realtors:
- The median sold price was $765,000, up 2.0% from a year ago.
- Closed sales fell 8.0% to 1,324 homes.
- Active listings rose 18.5% to 2,932 homes.
- Months of supply rose to 2.08. This measures how long it would take to sell every listed home at the current pace. A market with less than about 4 to 6 months of supply generally favors sellers.
The bigger story is what kind of homes are being added. Most of the new inventory is condos and townhomes. Detached single-family homes are still in short supply.
So this is not a crash. It’s a market that’s becoming more selective, with more choices in some segments and continued competition in others.
What It Means for You
First-Time Buyers
Higher rates are a real hurdle, but there’s a silver lining: more condos and townhomes on the market means more choices and, in some cases, more room to negotiate.
- Get pre-approved first. Know your real budget at today’s rates before you fall in love with a home. Our home buying process guide walks through each step.
- Ask about rate buydowns. A buydown is when a seller or builder pays to lower your interest rate, either for the first few years or for the life of the loan.
- Look into first-time buyer programs. Virginia has assistance programs that can help with down payments and closing costs. See our overview of common loan types, and ask a lender which ones you qualify for.
Luxury Buyers and Sellers (McLean and Beyond)
At the higher end, the tight supply of detached homes still matters a lot. Well-priced, well-presented homes in areas like McLean continue to attract serious buyers.
- Sellers: Buyers are comparing more options, so pricing right from day one matters more than ever. An overpriced listing can sit, and a stale listing is harder to sell.
- Buyers: Many luxury purchases use jumbo loans (loans above standard limits) or cash. Rate changes affect jumbo financing too, so talk to your lender about current options and whether a strategy like an adjustable-rate loan makes sense for you.
New Construction
Builders are working hard to keep buyers moving. Nationally, large builders are offering incentives at roughly double their normal levels, often in the form of mortgage rate buydowns, closing-cost help, and upgrades.
- Compare the full package, not just the price. A lower rate can save more over time than a small price cut.
- Understand temporary vs. permanent buydowns. A temporary buydown lowers your rate for the first year or two, then it goes up. Make sure you can afford the full payment later.
- Bring your own agent. The builder’s sales team works for the builder. In most cases, having your own representation costs you nothing extra and helps you negotiate. Learn more about working with a buyer’s agent.
Sellers in General
More inventory means more competition. Homes that are priced well, show well, and are marketed well still sell. Homes that aren’t may sit. Curious where your home stands? Get a free home value estimate.
The Takeaway
Rates are higher, and the Fed may not be done. But Northern Virginia’s market is holding up better than the headlines suggest. Buyers have more choices than a year ago, and good homes are still selling.
The right move depends on your situation, not the headlines. Whether you’re buying your first home, selling in McLean, or considering new construction, I’m happy to walk you through your options.
Contact me today to talk through your plans, or call my direct line at 202-710-3342 (office: 833-944-4611).
Mukaram Ghani
RE/MAX Galaxy, serving Northern Virginia
This article is for general information only and isn’t financial, tax, or legal advice. Please consult a qualified lender, tax professional, or attorney about your specific situation.
Explore homes for sale in Fairfax, McLean and Ashburn, or see our home buying guide, our selling page and the Northern Virginia homes for sale guide.