When Caleb Gamblin and Shawn Booth, two savvy agents with Parks, listed the home at 3415 Springbrook Drive, they decided to lead their marketing efforts with their offering of a one-year, 5% interest rate rather than a photograph of the house.

“Seller now offering a 5% interest rate for the first year, limited time offer!” they state in the description of the house.

When interest rates on home mortgages began to spike upward, the phrase “Marry the house. Date the rate” was floated into the residential market, hoping buyers would have an optimistic outlook and feel the high rates were temporary. At some point, the theory goes, rates would return to normal.

But what is normal?

The slogan of dating the rate and marrying the house – while catchy – began to lost its luster as the Federal Reserve continued to raise interest rates on 11 occasions over almost two years. With interest rates on 30-year mortgages reaching 8%, the prospects of finding a new normal that the borrowers could embrace were slim.

Those buyers who opted to date the rate in the early going might have feared they had entered a prearranged marriage, as they were perhaps going steady with the rate after one year. In this round of rate hikes, lenders offered no adjustable-rate mortgages, as they had in the past.

The best variation of the fixed-rate loans was to go with a two/one buydown, which basically had someone pay two years of interest in advance, the first year was at 2% below the market interest rate and the second year at 1% below market. The plan/hope was that rates would stabilize and borrowers could lock in a reasonable rate during the first two years.

After one year, those who acted early had gone from dating to a full-blown relationship in which they were unable to break up and go with a different more attractive mortgage. Neil Sedaka’s “Breaking Up is Hard to Do” took on new meaning.

When home purchases were skyrocketing, borrowers enjoyed rates as low as 2.1% with almost all new homeowners getting rates of better than 4%. Most homeowners had refinanced if they intended to stay in their homes.

Now, lenders, Realtors and buyers were wondering if rates would ever drop again and, if so, how long it will take buyers to accept the higher rates. Then, out of the blue, rates began to drop slightly as the Fed halted its rate hikes.

The Fed has said it expects to cut rates three times in the coming year, which means further drops in mortgage rates. Suddenly, borrowers saw the possibility of divorcing the rate they were dating. Those dating the high rates who felt trapped in the relationship began to play the field in search of a new dating partner.

I shall now conjure the most oft-used and misused word in the English language: “literally.” If taken literally, the “date/marry” slogan begs for infidelity. Maybe playing the field is a better description.

Now, with almost two years of high rates, it seems 5% is the belle of the ball. To go biblical, “the stone which the builder rejected has become the cornerstone.” In 2021, no one would have wanted a 5% loan. Today, well, take a look at what veteran Realtors Caleb Gamblin and Sahwn Booth used to sell a $2 million listing.

The rates are not 5% yet, but 2/1 buydowns are, and that is how they market the home – by offering a $35,000 “interest rate promotional credit.” With the 5% loan offer, they sold the property in 17 days.

By the way, the house is lovely with six bedrooms, five full bathrooms and two half bathrooms within its 4,662 square feet. It sold for $2.1 million, or $450 per square foot.

The house has a 30-foot-tall entry foyer and 12-foot ceilings throughout, a chef’s kitchen, double walk-in closets and a covered deck. And, in case you missed it, the first year, the interest rate is 5%.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty, LLC an can be reached at [email protected].