Why Buying a Home While Rates Are High May Save You Money in Virginia Beach, Virginia

Written by:

Alejandra Rodriguez

Date:

07 Sep 2026

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Mortgage rates above six percent have buyers waiting on the sideline, but the wait itself may be the most expensive decision they make. According to Marty Medve, Co-Owner & Principal Broker at Trident Home Loans, the pattern has repeated across three rate cycles over 25 years: when rates drop even modestly, pent-up demand floods the market, inventory disappears, and prices jump by more than the monthly payment savings from the lower rate. Buyers who hold out for a better note often pay tens of thousands more for the house itself.

Medve, whose Florida-based company is licensed in 49 states and processes roughly 25 to 30 applications per day, recently advised an airline captain in Virginia Beach shopping for a home above $1.2 million. The conversation illustrates the trade-off facing buyers in supply-constrained markets right now.

The Math Behind Buying at Higher Rates

Medve’s advice was blunt: “You better buy now while rates are high, because if you don’t, you’re going to get slaughtered on the price.”

In that Virginia Beach scenario, the buyer planned to offer $50,000 below asking because the market is slow. That negotiating room vanishes when headlines announce falling rates and sidelined buyers rush back in.

Medve pointed to February 2026 as a preview. When rates dipped briefly, his company went from roughly 25 to 30 applications per day up to 50. Sellers noticed and stopped negotiating.

Once rates fall further, Medve warned, “the market becomes a feeding frenzy.” For the Virginia Beach buyer, that means the same house could cost $50,000 to $100,000 more in a few months – far exceeding any monthly payment savings from a lower rate.

The Refinance-later Strategy

The playbook Medve describes is straightforward: lock in a purchase price while competition is thin, accept the higher rate temporarily, and refinance when rates fall. He noted that Trident often covers closing costs with credits on refinances, reducing the cost of doing the loan twice.

Medve acknowledged the strategy carries risk. If inflation returns, rates could rise further rather than fall. He also noted that government efforts to transfer long-term debt to short-term instruments should push rates down, but that outcome depends on inflation staying under control – something he tied partly to gas prices continuing to decline.

For the Virginia Beach buyer, the bet is that a temporarily higher monthly payment costs less than the price appreciation he’d face in a more competitive market. That bet gets stronger in markets with limited inventory, where even a half-point rate drop triggers immediate demand.

Where This Logic Applies – and Where It Doesn’t

Medve draws a sharp distinction between markets. In Virginia Beach, Minnesota, Michigan, and Illinois – places where builders slowed construction years ago – inventory is tight enough that any demand surge creates immediate price pressure. The buy-now strategy holds strongest there.

Florida is more complicated. South Florida, particularly Miami, operates on cash and international capital rather than rate sensitivity. Medve noted that money from properties purchased years ago for $5 million and now selling for far more is flowing north through 1031 exchanges into Ocala, Orlando, and surrounding areas. That investment activity is fueling construction.

Meanwhile, builders in Jacksonville, Panama City Beach, and Pensacola kept constructing, creating more supply. Those markets are softer and more stable – closer to what Medve compared to a Texas-style market where prices aren’t climbing sharply. In those areas, a rate drop won’t drain inventory overnight, so the urgency to lock in a price today is lower.

For buyers in supply-constrained coastal markets like Virginia Beach, the calculus is different. Medve described it plainly: “You don’t want to buy when rates are low. My God, there’s no property available and the prices are higher.”

The Virginia Beach captain chose to act. He put in an offer $50,000 below asking, using the slow market as leverage. Whether the seller accepts is uncertain, but the negotiating position he holds today disappears the moment market sentiment shifts. Medve estimates that buyer has two to three months before rate declines bring enough competition to eliminate that advantage.

About the Expert: Marty Medve is Co-Owner and Principal Broker at Trident Home Loans, a Florida-based lender licensed in 49 states specializing in VA lending for military and aviation professionals. A former Navy carrier pilot, he spent 25 years as an airline captain.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.