High Mortgage Rates, Better Deals? Why Now May Be the Best Time to Buy in Camas or Washougal, WA

October 2026 | Camas & Washougal, Washington Real Estate

If you’ve been waiting to buy a home in Camas or Washougal because mortgage interest rates are around 7%, you may be overlooking one of the biggest opportunities buyers have had in years.

I understand why today’s rates are discouraging. Higher interest rates mean higher monthly payments, and affordability is a real concern.

But here’s what many buyers aren’t considering: Today’s housing market gives us negotiating power that was nearly impossible to find just a few years ago.

We’re not just talking about getting a lower purchase price. We may also be able to negotiate for the seller to help pay your closing costs or buy down your mortgage interest rate.

Imagine getting a great deal on a home, avoiding a bidding war, AND having the seller help reduce your monthly mortgage payment. That’s a huge opportunity!

Camas and Washougal Have Shifted to a Buyer’s Market

According to the October 2026 Altos Research market reports:

• 48% of homes listed in Camas have experienced price reductions.
• 55% of homes listed in Washougal have experienced price reductions.
• There are 170 active listings in Camas and 113 in Washougal.

That’s nearly half the homes in Camas and more than half in Washougal that have already reduced their asking prices.

Buyers have more choices, homes are spending longer on the market, and many sellers are becoming increasingly motivated to negotiate.

Remember when buyers were competing against multiple offers, paying above asking price, and sometimes waiving important contingencies just to get a home?

Today’s market is very different.

Now we can often take more time to evaluate a property, negotiate on price, request repairs, and explore seller concessions that could make homeownership more affordable.

Here’s the Opportunity Most Buyers Are Missing: Seller-Paid Mortgage Rate Buydowns

With mortgage rates around 7%, many buyers have put their home searches on hold.

But what if you could purchase a home at a reduced price AND negotiate for the seller to help lower your mortgage payment?

That’s exactly the kind of opportunity I’m looking for when helping buyers in today’s Camas and Washougal market.

One powerful negotiating tool is a seller-paid mortgage rate buydown.

Rather than paying only your own closing costs, we can potentially negotiate for the seller to contribute money toward temporarily or permanently reducing your mortgage interest expense.

What Does a 2-1 Rate Buydown Look Like at 7%?

Let’s say your lender offers you a 7% mortgage rate.

We may be able to negotiate for the seller to cover the cost of a temporary 2-1 mortgage rate buydown.

Here’s how it works:

Loan Period	Effective Payment Rate
First year	5%
Second year	6%
Third year and beyond	7%

Your underlying mortgage rate remains 7%, but the buydown funds temporarily reduce your monthly principal and interest payments during the first two years.

After that, your payments return to the full amount based on the 7% note rate.

And here’s what makes this so appealing:

We may be able to negotiate BOTH a lower purchase price AND have the seller pay for your rate buydown.

A permanent rate buydown may also be available, where seller contributions help pay discount points to secure a lower note rate for the life of the loan.

The options and costs depend on your lender and financing program, but it’s absolutely worth exploring.

Imagine Negotiating a Lower Price AND Better Financing Terms

Let’s say you find a home listed for $700,000 that’s been sitting on the market.

A few years ago, you might have been competing against multiple buyers, offering above asking price, or limiting your contingencies.

Today, we may be able to negotiate a lower purchase price and ask the seller to contribute toward your closing costs or mortgage rate buydown.

That combination could save you money upfront and reduce your monthly payments.

Not every seller will agree, and seller contributions must fit within your loan program’s guidelines. But these are opportunities that simply weren’t as common during the competitive seller’s market.

The best deal isn’t always just the lowest purchase price. It’s the combination of purchase price, financing costs, and monthly payment that makes the most sense for you.

Why Waiting for Interest Rates to Drop Might Cost You

I regularly hear buyers say, “We’re going to wait until interest rates come down.”

And I understand that thinking.

But consider what could happen if mortgage rates drop significantly.

Buyers who have been sitting on the sidelines may jump back into the market. More competition could mean fewer opportunities to negotiate, multiple offers, and potentially higher home prices.

Suddenly, that lower interest rate might not come with a better overall deal.

Here’s something important to remember: You can negotiate your purchase price today, but you can’t go back and renegotiate it later.

Your mortgage rate, however, may be something you can refinance in the future if rates decrease and refinancing makes financial sense.

Of course, refinancing isn’t guaranteed, and there are costs involved.

But buying while sellers are motivated and buyers have more negotiating power could put you in a strong position.

The Advantage of Working With a Local Buyer’s Agent

As a Camas and Washougal real estate broker with Windermere Crest Realty, I help buyers look beyond the asking price to identify opportunities they might otherwise miss.

I’m watching which homes have reduced their prices, how long properties have been listed, what competing homes are doing, and where sellers may be more motivated.

I also believe in working closely with a knowledgeable lender so we can evaluate the entire transaction.

Sometimes negotiating seller-paid closing costs or an interest rate buydown may be more beneficial than simply pushing for the largest possible price reduction.

Every buyer’s financial situation is different, and the right strategy depends on your loan program, down payment, and long-term goals.

My job is to help you understand your options and negotiate a purchase that makes sense for you.

The Bottom Line: Don’t Let High Interest Rates Keep You From Exploring Your Options

I know 7% mortgage rates don’t sound exciting.

But the negotiating opportunities available in today’s Camas and Washougal housing market certainly are.

We’re seeing widespread price reductions, more inventory, and sellers who may be willing to negotiate terms that weren’t realistic just a few years ago.

You may be able to buy a home below its original asking price, negotiate seller-paid closing costs, and have the seller help buy down your mortgage rate—all without the pressure of a bidding war.

That’s worth paying attention to.

If you’ve been waiting for the perfect time to buy a home in Camas, Washougal, or the surrounding Southwest Washington area, let’s take a closer look at what’s available.

You might be surprised by the opportunities in today’s market and how we can structure an offer to make a home more affordable.

Before deciding to wait for lower interest rates, let’s see what we can negotiate today.

Nicole Dreyer
Real Estate Broker | Windermere Crest Realty
Serving Camas, Washougal, Vancouver & Southwest Washington

Sources: Altos Research weekly single-family housing reports for Camas 98607 and Washougal 98671, dated October 10, 2026. The 7% mortgage rate is a representative example supplied for this article, not a verified marketwide average or rate quote. Buydown scenarios are illustrative. Seller concessions, loan eligibility, buydown options, and restrictions vary by lender and loan program. Temporary buydowns do not change the underlying note rate, and buyers must qualify under applicable lender guidelines.