Nearly half of recent buyers secured mortgage rates below 5% — How?

In September, the housing market saw the lowest mortgage rates it’s seen this year at 6.08% for a 30-year fixed mortgage rate. However, the start of October saw another spike in rates; the current U.S. weekly average raised to 6.79%, according to Freddie Mac.
Current interest rates in Utah range above the national average. As of Friday, Bankrate reported a 7.10% 30-year fixed mortgage rate in the Beehive state. On top of high rates, Utahns — like many other states — are facing severe supply and demand issues, and has seen home prices increase by more than 75% since 2018.
High prices and the fluctuating mortgage-rate environment undoubtedly present obstacles for homebuyers and for many, keeps them from entering the housing market. Still, determined buyers are discovering creative solutions to achieve homeownership.
A recent Zillow survey found that even with decade-long high rates, recent homebuyers have been able to secure mortgage rates below 5%. Special financing through buyers and sellers was the key for most homebuyers in getting a lower rate.
How buyers secured a below 5% rate:
“This surprising finding really underscores the creativity of both buyers and sellers navigating today’s dynamic real estate market,” Amanda Pendleton, Zillow’s home trends expert, said in a press release of the study.
“Buyers are finding innovative ways to secure a lower mortgage rate, but sellers are also coming up with financing solutions to make their property more attractive to a potential buyer. Prospective homebuyers should explore all the ways they can reduce their monthly payment to bring homeownership within reach.”