Navigating High Interest Rates on Martha's Vineyard

Jen Hawkins O'Hanlon, REALTOR®


In the world of real estate, change is the only constant. As interest rates ebb and flow, prospective home buyers find themselves facing a new challenge: higher interest rates. The financial landscape is shifting, but that doesn't mean your dreams of homeownership on Martha's Vineyard need to be put on hold. In fact, this period of high interest rates can be navigated strategically with the right approach. So, if you're wondering how to make the most of this market, read on to discover twelve savvy steps that can empower you to become a confident home buyer even in the face of rising rates.

1. Shop Around for the Best Rates
First things first, don't settle for the first interest rate you come across. Different banks on Martha's Vineyard offer different rates, and with increased competition in a slower market, you have the opportunity to find a more favorable deal. A little extra effort in rate shopping can translate into significant savings over the life of your mortgage. Contact one of our team members to assist with local recommendations.

2. Elevate Your Credit Score
A higher credit score can be a powerful asset when it comes to securing a more favorable interest rate. Whether your credit is less than perfect or already in good standing, targeted actions can help improve it. Consider seeking advice from credit consultants who specialize in guiding you toward credit enhancement strategies. Watch our video to learn more about how credit scores weigh into a home purchase on Martha's Vineyard.

3. Adjust Your Budget
In a world of increasing interest rates, flexibility is key. Instead of aiming for that million-dollar dream home, explore properties that come with a more modest price tag. Expanding your options can lead you to hidden gems that fit your needs and budget.

4. Emphasize Monthly Costs
When evaluating properties, remember to factor in more than just the sticker price. Homeowner association fees, real estate taxes, operational costs, and insurance can all impact your monthly bottom line. Remember, real estate taxes on Martha's Vineyard are much lower than most states in the country. Chilmark and Edgartown consistently boast the lowest tax rates in all of Massachusetts. Sometimes a seemingly pricier property can turn out to be more financially manageable due to its lower ancillary costs.

5. Pursue Negotiable Listings
Not all sellers are created equal in terms of negotiation. Seek out properties where the asking price may be more flexible. Some sellers are willing to budge, especially in today's dynamic market. On Martha's Vineyard, we currently have many homes that have been on the market for over 6 months and may be great opportunities for negotiation. By keeping an open mind, you might uncover opportunities that align perfectly with your budget.

6. Bolster Your Down Payment
Increasing your down payment can be a shrewd move during a period of high interest rates. While saving up more funds for a larger down payment might seem challenging, the interest savings over the life of your mortgage can make it well worth the effort.

7. Avoid Timing the Market
Predicting market trends is a risky endeavor. While rates may decrease in the future, home prices could simultaneously rise due to increased demand. We are seeing many areas of Martha's Vineyard with prices continuing to rise. The Martha's Vineyard housing inventory is still much lower in 2023 than it was in 2019 and we expect it to take several years to get back to pre pandemic levels. Remember that you can always refinance later if rates become more favorable, but the cost of homes may have escalated in the meantime.

8. Reframe Your Living Budget
Analyzing your overall living expenses can yield opportunities for reallocating funds toward your mortgage. Small adjustments can make a big difference over time, allowing you to channel more money into building equity and securing your financial future. Wondering where you may be able to cut costs to allow you to save more? Consider reading a book like Start Late, Finish Rich for some amazing information and action plans to enhance your financial future. 

9. Dare to Make Offers
Uncertainty breeds opportunity. In the current climate, sellers who have owned their homes for an extended period might not have the same cost basis as recent buyers. Don't hesitate to make offers on properties that resonate with you; you might just find an open door where you least expect it.

10. Consider Owner Financing
For those sellers with ample equity, owner financing might be an attractive option. It can be mutually beneficial, allowing you to secure financing and the seller to potentially mitigate capital gains taxes.

11. Explore Fixer-Uppers
While the allure of move-in ready homes is strong, don't overlook the potential value of fixer-uppers. On Martha's Vineyard, many second home buyers are looking for something that does not need any work, so they can spend their limited time on the Island enjoying their home. This presents a great opportunity for anyone willing to take on a project. Embarking on your own renovation journey can lead to increased equity and long-term financial gain.

12. Rent vs. Buy: A Long-Term Perspective
Amidst market fluctuations, remember that each month you pay rent is a month without equity building and a missed tax deduction opportunity. As rents gradually align with inflation, the benefits of homeownership become increasingly apparent.

In the midst of a real estate landscape shaped by high interest rates, there's no need to be disheartened. By embracing a strategic approach and making well-informed decisions, you can successfully navigate this market to make your dreams of owning a home on Martha's Vineyard a reality. From rate shopping to considering a home that needs updating, the steps you take today will not only shape your homeownership journey but also lay the foundation for a more secure financial future. Remember, every challenge presents an opportunity – and this period of rising rates is no exception. Reach out to one of our experienced Martha's Vineyard agents today!


As a team, we work in harmony for the benefit of our clients. We handle multiple transactions at once and are able to execute a complex marketing strategy by leveraging team resources. We can be in several physical locations at once to ensure showings are always possible for our buyers and sellers. Our clients benefit from the combined experience of our agents and administrative staff.

Let's Connect
Follow Us