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Higher mortgage rates don't just affect buyers. They can change what it takes to sell your house, too. That's because today's buyers are paying close attention to affordability. And when rates rise, even a relatively small change can make a noticeable difference in their monthly payment. So, they're looking for ways to make the numbers work. And in some markets, new construction is giving them exactly that. If you're planning to sell, that doesn't mean you can't compete. But it does mean you need to understand what builders are doing to win over buyers – and what options you have, too. Builders Are Competing on the Monthly Payment New construction has something interesting going for it right now. While existing-home sales (homes that have previously been lived in) continue to struggle under the weight of higher mortgage rates, new-home sales are holding up a bit better. In a recent interview, Logan Mohtashami, Chief Economist at HousingWire explains new-home sales are at an 8-month high and are now running around 2019 levels. On the flip side, existing home sales are lagging behind and fall about 1 million home sales short of 2019 levels. One big reason builders have been able to navigate higher rates differently is incentives. According to Realtor.com, nearly 1 in 5 (18.8%) newly built homes come with some kind of buyer incentive advertised up front: The most common may surprise you. As the graph shows, many builders are offering reduced rates, sometimes through something called a mortgage rate buydown. It’s essentially where they pay upfront costs to help buyers get a lower rate, and by extension, a lower monthly payment. It has obvious draws for buyers. For homebuilders, it helps them get their houses sold. So, a lot of builders see it as a win-win. That’s why reduced rates are a part of 13.8% of new home listings. In some cases, builders are offering rates below 6%, maybe even far below 6%. And that can help buyers shave hundreds off their monthly payment. That's a big difference to a buyer who are feeling the pinch right now. So, How Can Sellers Like You Compete? First, don't assume a mortgage rate buydown is something only a builder can offer. Sellers can contribute toward a buyer's rate buydown too, depending on the loan and transaction. Does that mean you should offer one? Or that you have to if you want to compete? Not necessarily. A buydown is just one possible lever. Depending on your market and the buyer, it may make more sense to negotiate on price, contribute toward your buyer’s closing costs, make repairs, or make sure your house stands out in ways a new build can't. That's why working with an agent who knows your local competition matters. Joel Berner, Senior Economist at Realtor.com, says: “Sellers of existing homes are facing a lot of competition from the new-home space. . . so sellers should highlight the local amenities of their neighborhoods in contrast to the more suburban or exurban communities where many new homes are built.” A great agent will do this naturally anyways. Knowing what makes your house different and showcasing that in your listing can help your house stand out. And remember, being open to making a few compromises or throwing in some concessions can make a bigger difference for buyers than you may think. Today's Market Rewards Sellers Who Adapt Builders have also been quicker to adjust their prices based on what buyers can actually afford and where demand is. That's putting pressure on the resale market in some areas. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains: “. . . existing homeowners now have to do the price discovery that builders have been doing since 2022.” That's an important message if you're hoping to sell. You don't automatically need to slash your price or offer a big concession. But you do need to price and market your house based on what buyers can pay today – not what sellers could get a few years ago. And remember, this varies tremendously by location. New construction represents a much bigger share of the competition in some markets than others, and builder incentives aren't equally common everywhere. So, lean on an agent to see how big of a factor builders are in your area. Bottom Line Higher mortgage rates are making buyers more cost-conscious. Builders know that, and many are responding with rate buydowns, closing-cost help, price reductions, and other incentives. If you're thinking about selling, talk to an agent about what buyers are getting from other homes in your area – including new construction – so you can make sure your house is positioned to compete.
Half the buyers out there are scared home prices are about to crash. The other half are hoping they will. A recent survey from Clever found 58% of Gen Z buyers are actually rooting for a crash, just so homeownership feels within reach. So, what do the forecasts actually say? Every quarter, Fannie Mae surveys more than 100 housing experts on where prices are headed. The newest results are in. And spoiler alert: they’re not calling for a crash – not even the pessimists. What the Newest Numbers Actually Say The panel's latest forecast has prices climbing every single year through at least 2030. The panel's average forecast is that prices will rise by 14.7% in the next 5 years. And here’s where it gets really interesting. If you split these experts into optimists and pessimists, even the pessimists still expect prices to increase about 6.6% by the end of 2030 (see graph below): The takeaway? If you've been waiting for prices to fall, you may be waiting a while. One thing to keep in mind though – these are national numbers. Prices in your area could run a little hotter or a little cooler than this, so it helps to know what’s happening locally, too. But the big picture is prices aren’t crashing. Historically prices usually rise. How This Quarter Compares to the Past Here’s something you probably don’t realize. This survey runs 4 times every year, so you can track the panel's mood over time. A year ago, the panel expected home prices to grow 2.1% this year. Now they’re forecasting 2.5%. That means the near-term outlook actually got more optimistic. But that’s only part of the story. The years after that shifted, too (see graph below): Zoom out to 2027 through 2029 and the mood has cooled a bit. Each of those years is now expected to see a little less growth than the panel thought a year ago. That’s likely a reflection of where we are right now with everything that’s impacting the housing market. But again, the overall takeaway here is every bar shows an increase in prices – the size of that increase has just moderated due to some of the factors at play. A slower climb isn’t a bad thing, though. It’s a sign the market is settling into a more normal pace after a few wild years. A little more growth here, a little less growth there. What hasn't budged once is the idea that home prices will keep growing. What It Means for Your Next Move Now, percentages are great, but you probably care more about the actual dollars and cents of your move, so let’s graph that out, too. Run the numbers on a $400,000 home bought in January, and the panel's latest forecast puts you up about $58,000 in equity in 5 years just from price growth (see graph below): That’s real wealth you could be building while others sit on the sidelines, waiting for a crash the experts don’t see coming. And with prices expected to keep rising, waiting could mean paying more for the same home later. Bottom Line Whether you're bracing for a crash or hoping for one, the verdict is the same – prices are still expected to rise, not fall. Talk with a local real estate agent about what that means for your market and your plans.
You may have seen the headlines saying mortgage rates have climbed to the highest point since January 2025. And if that's left you reluctant to buy a home, here's what you need to remember… That's not necessarily the number you'd get. It's a common misconception that the rate you see in the headlines is the same one you'd get when you buy. The truth is, mortgage rates shift often, and the rate you actually end up with can vary a lot from what you may see or hear about. What Determines Your Real Rate? Advertised rates and “real rates” aren’t always the same. That’s because real rates are based on your specific situation, which includes your overall finances and goals. The rates you see in the headlines can’t possibly reflect that. That’s why only a lender can tell you what your real rate will be. To figure out your unique number, they’ll look at: Your credit score: Your credit score includes your payment history (if you’ve made late payments – and how often), credit utilization (are your accounts maxed out, or do you have available credit?), and the length of your credit history (how long have your accounts been open?). For example, someone with an exceptional credit score may qualify for a better rate. Your debt-to-income ratio (DTI): This is calculated by dividing your monthly debt payments by your monthly income before taxes to come up with a percentage. The higher your DTI, the higher your rate could be. The down payment size and Loan-to-Value (LTV): Your down payment is the percentage of the home’s price you will put down. The LTV is the percentage of a home’s sales price that equals your mortgage. The type and term of loan program options: Your loan officer will walk you through different loan options based on what you qualify for. Mortgage rates can vary between different loan products and programs. Even after you find a home you love, other things can have an impact too. For example: A mortgage rate buydown: This helps you get a lower mortgage rate, and by extension, a lower monthly payment, by paying an upfront cost. Sometimes a seller, builder, or another party may even offer to cover that cost themselves as an incentive for you to buy. Seller concessions: Sellers are allowed to pay buyer closing costs according to most loan program guidelines. Seller-paid closing costs can add up to thousands of dollars, which can free up some cash for you to increase your down payment, pay down debt, or make other financial adjustments to try to get a better rate. There’s a lot that can ultimately have an impact on your actual rate. Your First Step? Getting Pre-Approved. If you want to know if your number could be higher or lower than the headlines on social, you need to talk to an expert. A simple conversation with a loan officer can help you determine when you’ll be ready to buy, how much you can borrow, and of course, what your real rate will be. Your lender may recommend a pre-qualification and pre-approval: Pre-qualification is a general estimate of what you might be able to borrow based on self-reported information. On the flip side, pre-approval is actually a conditional commitment from a lender based on verified information. Just know that, of the two, the pre-approval process gives you a more accurate picture of your options than pre-qualification. Bankrate gives a quick comparison so you can see why: How To Get Ready for the Conversation Ask your lender what documents you’ll need to gather for that conversation. And keep these questions in your pocket too. They’re good things to go over when you talk: What will I gain or lose by waiting to buy a home for 3, 6, or 12 months? Will I get any tax advantages by buying a home - and what are they? What's the benefit of buying a home and starting to build equity now versus waiting? And how does that impact my finances in the long run? How will rate changes in either direction affect me? Once you find out your rate, maybe you can buy now. Or maybe you still need to wait. But at least you’d know your options and can make an informed decision. Bottom Line Headlines and social media make today’s rates sound high. But you have to remember, the rate you’re seeing online and your actual rate could be different. The only way to know what your rate could be is to talk to a trusted lender. With the right help, you can find out what your real rate is – and where it can take you.
Price cuts are turning up everywhere right now, and they read very differently depending on which side of the deal you’re on. Sellers tend to worry a cut means walking away with less than they hoped. Sometimes that’s true, but more often it just means the market moved faster than the listing did. Buyers, for their part, often assume a cut means something’s wrong with the house. Most of the time, that’s not it. This is what's actually driving all those price cuts, and why it matters no matter which side of the deal you're on. 42% of Homes for Sale Are Now Carrying a Price Cut According to HousingWire Data, the share of sellers cutting their asking price has climbed every month for 7 straight months (see chart below): Today, more than 4 in 10 active listings have had at least 1 price cut, and the typical seller is cutting about $17,560 off their original number. Here’s why that’s happening. With rates still elevated and more homes to choose from, buyers can afford to wait for the right number. So, sellers who don’t start there often end up adjusting anyway. What does that mean for you? If you're selling, this isn’t a red flag. But it is a sign that pricing it right from day 1 is your best bet. Just know that the market's been shifting fast enough this year that sometimes even a well-priced house can fall behind within a matter of weeks. If that happens to you, dropping your price to catch up to where pricing actually stands today tends to bring in more buyers and helps you sell closer to true market value. If you're buying, it's easy to assume a price cut means something's wrong with the house. But with cuts happening on more than 4 in 10 homes right now, the reality is sellers are just catching up to where the market already is. And with affordability still tight, that's exactly the kind of opening you need to get a better deal. Why Sellers Are Adjusting Faster than Before HousingWire Data also shows list prices are trending down nationally. That’s often a sign sellers are pricing more realistically from the start instead of listing high and getting stuck cutting later. List prices have fallen about $26,000 from last year's peak. Some of that decline is seasonal, since list prices typically soften each winter before rebounding in the spring. So, expect asking prices to keep drifting a little lower before turning back around (see chart below): Jake Krimmel, Senior Economist at Realtor.com, explains: “That is good news for buyers, who are seeing lower asking prices and more room to negotiate, but it is also good news for sellers: Pricing to today’s demand is helping homes move and keeping more transactions alive in a high-rate environment.” Translation – with rates still elevated, buyers can only stretch so far. Sellers who meet them where they are instead of holding out for unrealistic prices are the ones actually getting to closing. And doing that up front is always better than chasing the market later. Buyers, You’ve Got Room To Negotiate Again At the same time, Redfin data shows sellers now outnumber buyers by about 58%, the widest gap on record (see chart below): That changes the power dynamics of the market – and impacts how homeowners should price their house. Nationally, about 7 in 10 markets now favor buyers or are trending that way. For sellers, that means standing out matters as much as pricing. With more homes to choose from, buyers are comparing you directly against the competition. So, a little flexibility, like covering closing costs or being open on timing, can be what gets your house picked over another. For buyers, it means more room to ask for a lower price, help with closing costs, repairs after inspection, or some combination of all 3. That’s especially true for homes that have already sat for weeks, where sellers are often the most willing to talk. Bottom Line Price cuts are a normal part of today’s housing market, and both buyers and sellers can use them to their advantage. Connect with a local real estate agent to look at what's actually happening with prices in your neighborhood, so you know exactly where you stand before you list or make an offer.
Today’s housing market splits into four distinct types. You’ve got cash buyers, buyers financing a purchase, owners who feel locked into a low rate, and builders with homes to sell. Which type you’re in changes how you should buy or sell. Ryan Serhant, CEO of SERHANT agrees: “There is no longer a housing market . . . There are four Americas.” Here’s what each looks like, and what it means for you. Cash Buyers: 1 in 4 Buyers Are Paying with Cash If you already own a home, you may be able to buy your next place in cash thanks to your equity. In fact, 26% of existing home sales this summer were all-cash, according to the National Association of Realtors (NAR). That's roughly 1 in 4 buyers skipping a home loan entirely. Data from Realtor.com shows most are at the very top and very bottom of the market by price point (see graph below): For Buyers: If you’re able to buy in cash too, having no financing contingency means your offer is going to look really appealing to sellers. You may get a faster close and more room to negotiate. For Sellers: A cash offer can mean less risk of the deal falling through, but that certainty sometimes comes with a lower number attached. Compare the whole picture before deciding it’s automatically your best offer. Buyers Using Financing: They’re Not Getting Help from Rates, But They Are from Sellers If you’re looking to take out a mortgage, you should know mortgage rates aren’t likely to come down anytime soon. Data from Fannie Mae shows nearly half of experts actually raised their long-term rate forecast this year (see graphs below): That’s tough for homebuyers relying on a mortgage, especially first-time buyers. But it’s not all bad news. While buyers may not be getting the lower rates they want, at least there’s help to be had if you ask sellers for what you really need. Redfin data shows almost half of May sales included a concession like a rate buydown or closing-cost credit from the homeowner. For Buyers: Stop waiting on rates to drop. Negotiate the concession instead. If the payment works today, that's your signal. For Sellers: Expect to negotiate. Build a concession into your pricing strategy from the start could be the thing that gets a deal done. Rate-Locked Homeowners: Most Are Sitting on a Rate Below 5% If you own a home already, you might not want to move and take on a higher rate than the one you’ve got. That’s the case for a lot of people. About 2 in 3 homeowners have a mortgage rate under 5%, according to Federal Housing Finance Agency (FHFA) data (see graph below). When a homeowner has a rate that low, it’s harder for them to want to move and leave behind that ultra-low rate. Because, they’d likely have to take on a higher one on their next home. Hence “rate locked” – they feel locked in. And, according to Fannie Mae data, most experts think that lock-in will stick around another 3-5 years. That means this will continue to be a factor in how many homes come up for sale. For Buyers: Fewer homeowners are listing, but the ones who do usually have a real reason to move. They’re often more flexible, motivated sellers. For Sellers: Run the math on what your equity actually buys before ruling out a move. Got an FHA or VA loan? Ask about making it assumable. It's rare, but it's a real selling point. Homebuilders: They’re Negotiating More Than You Think If you’re looking at new construction, this might be your moment. According to the latest Census data, builders have more unsold new homes sitting around than usual, enough that it would take nearly 10 months to sell them all at the current pace (well above the normal 4-6 months pace). That's pushing builders toward price cuts and rate buydowns. For Buyers: That's where the deals are right now. Just be sure to use your own agent and compare the whole incentive package, not only the price tag. For Sellers: Lead with what a builder can’t offer – mature landscaping, an established neighborhood, and a house that’s ready today, not in 8 months. That can help your house seem like a better optiona Bottom Line Four different housing markets are running at once: cash buyers, financed buyers, locked-in owners, and builders. Each one plays by its own rules, and the right move for one is exactly the wrong move for another. Connect with a local real estate agent to figure out which one you're actually in and build your next move from there.
If you're trying to buy a home, affordability is probably what keeps you up at night. And as you watch mortgage rates tick up again lately, it’s fair to wonder if you should just hit pause and wait for them to go down. For now, though, they’re headed the other way. Mortgage News Daily data shows how rates have risen this year (see graph below): And if you’re wondering why? There are actually a number of reasons. Mortgage rates are impacted by the situation overseas, economic data, inflation numbers, oil prices, and even decisions from the Federal Reserve (who recently decided to hike their Fed Funds Rate – which often affects mortgage rates too). As Danielle Hale, Chief Economist at Realtor.com, explains: “The pressure on mortgage rates was here even before the Fed rate hike, and it doesn’t show signs of relenting. . .” Now, that’s probably not what you wanted to hear. But, it doesn’t mean there’s nothing you can do. While you can't control where rates go from here, you absolutely can control several things that shape the rate you actually get. So where should you focus? Let's walk through it. Work on Your Credit Score Your credit score plays a big role in the rate you qualify for, and even a small improvement can make a real difference in your monthly payment. As Freddie Mac puts it: "Generally, the higher your credit score the more options will be available to you, including better loan terms and a lower interest rate." So, make sure you do what you can to keep your credit score up. If you're not sure where your score stands right now, or how to improve it, talk to a trusted loan officer. Explore Your Loan Options The type and term of your loan both affect your rate. Conventional, FHA, VA, and USDA loans each come with their own requirements and rates, and your term (15, 20, or 30 years) changes both your payment and the total interest you'll pay. The structure matters, too. A fixed-rate loan holds the same rate over time, while an adjustable-rate loan usually starts lower and can move later on. Bankrate explains it this way: ". . . rates on fixed-rate loans are typically higher than introductory rates on adjustable-rate loans because the fixed-rate lender takes on the risk that rates could increase during the loan’s term. Likewise, government-backed FHA, VA and USDA loans sometimes have lower rates because they have a government guarantee or insurance that cuts the lender’s risk." It’s important to explore your options with a lender to see what makes the most sense for you. Just be sure to balance your goals, your possible rate, and any potential tradeoffs before making any decision. You may even want to talk to multiple lenders to see how the options vary. Consider a Newly Built Home Another path to a lower rate comes down to the kind of home you buy. Many builders are buying down mortgage rates, which lowers your monthly payment. It’s just one way they’re trying to attract buyers and get their homes sold. According to Realtor.com, buyers of newly built homes landed a lower average rate last quarter than buyers of existing homes (see graph below): If a lower rate is your goal, it may be worth asking your agent to show you some new build communities that are offering this type of incentive locally. Bottom Line You can't control where mortgage rates go, but you can control your credit, your loan, and the kind of home you buy. Working with a trusted lender can help you lock in the best rate you qualify for. And when you’re ready to make a move that fits your budget, connect with a local real estate agent.
Selling your house this fall is absolutely doable. But there’s something you need to know about this time of year. Buyer activity typically starts to slow while the number of homes for sale climb – and you need the right strategy to get attention in this type of market. The good news? There’s a lot you can control. From how you price and present your house to how you negotiate and respond to feedback. Here are four things you’ll want to get right this fall. #1: Price To Get Buyers’ Attention In the fall, there are typically fewer buyers looking and more homes for them to choose from. So, you want to make the most of every buyer who comes across your house. And your price is one of the first things that can make them stop and take a closer look – or keep scrolling. That’s why this isn’t the time to start high “just to see what happens.” If buyers think your house is overpriced, they have plenty of other options to move on to. And that could leave you sitting and waiting. So, if you want to sell before year-end, work with your agent to find the right price for your house and today’s market. That may mean listing at market value – or even slightly below it – to grab buyers’ attention. Redfin explains how a seemingly small difference can change your buyer pool: “Buyers often search in round-number price brackets, so pricing at $499,000 instead of $505,000 can make your home appear in more searches and feel like a better deal.” #2: Make a Great First Impression When buyers had very few homes to choose from, they were often more willing to overlook dated finishes or a house that needed some work. That’s harder to count on now. With more choices, how your house looks online and in person can determine whether it makes a buyer’s shortlist at all. That doesn’t mean you need a full renovation before you sell, but you should take care of essential repairs, do what you can to boost curb appeal, and make sure your house photographs well. Maybe that’s some light staging, maybe it’s swapping out faucets or lights, or maybe a fresh coat of paint. Small details can help a lot. After all, you only get one chance to make that first impression. Make it count. #3: Stay Open To Negotiating Some sellers are still expecting the kind of leverage they had a few years ago. But in many markets, buyers have more negotiating power today and there’s a lot more give and take. The latest data from Redfin shows 46.2% of sellers gave buyers some type of concession. So, consider throwing in a little help with closing costs or covering a repair. Almost half of sellers are. The takeaway? Playing hard ball may not get you what you want. But being flexible might. The key is not getting so focused on “winning” every individual negotiation that you lose sight of the bigger goal: making your move happen. Sometimes a small concession is what gets you to the closing table. #4: Know When It’s Time To Adjust Sometimes your house tells you when something isn’t working. Maybe you’re getting plenty of online views but very few showings. Or buyers are coming through, but you’re not getting offers. Or maybe buyer feedback has one recurring theme. Pay attention to those signals. They can help you figure out what needs to change. Let’s say your price is the most common point of feedback. Talk to your agent about a price drop. It doesn’t have to be a big change to make a big difference. The average price cut right now is 4% according to HousingWire Data. That’s normal. Now, that doesn’t mean you should panic and slash your price after a week. It means you and your agent should pay attention to what buyers are telling you and adjust if you need to. Sometimes the smartest move isn’t waiting for the right buyer. It’s making sure you’re giving that buyer a reason to act. Bottom Line Selling this fall is absolutely doable. And now you know four of the biggest things to get right. If you want to sell before the end of the year, connect with a local agent to make sure you have the right strategy from day one.
Want to buy a house this year, but not sure if the timing’s right? Seasonally, it may actually be a better time to buy than you expect. Yes, mortgage rates have been ticking up lately – and that’s creating some real challenges with affordability. No one’s arguing that. But there are also predictable trends that happen this time every year that can put some wind back in your sails. According to research coming out of Realtor.com, nationally, the week of September 27 – October 3 will be the best time to buy this year for this very reason: “The week of September 27–October 3 brings together the market conditions buyers value most—elevated inventory, less competition and prices that have eased from their seasonal high—giving prepared buyers a way to offset high rates with savings on price and room to negotiate with confidence." But that’s the national best week. Depending on where you live, your local sweet spot may come a little earlier or later (see map below): It all depends on local trends and how inventory and buyer demand ebbs and flows seasonally where you want to live. But no matter when your market hits its peak, here are some of the perks you can expect this time of year. More Choices, Better Prices, and Less Competition For starters, there are more homes to choose from. In fact, data from the National Association of Realtors (NAR) shows the number of homes for sale recently reached its highest level in more than 10 years: “NAR’s data does show a strong uptick in for-sale inventory at the end of the summer, reaching the highest level in more than 10 years.” That means you may have a better shot at finding something you love and can afford without making as many compromises. And that’s not the only advantage. Realtor.com says buyers during this window could see home prices about $14,000 lower than the summer peak, along with 30% less competition from other buyers. Plus, homes tend to stay on the market almost 2 weeks longer (13 days), giving you a little more breathing room to make a decision. More choices. Better pricing. Less competition. That combination could be enough to ease some of the pressure higher mortgage rates are putting on your budget. The Window Doesn’t Close After This One Week But you certainly don’t have to buy during that very specific window. This isn’t a one-week-only opportunity. History tells us conditions should be tipped in your favor for the entire month of October: In fact, Realtor.com says 42 of the 50 largest metros see their best week to buy fall sometime during October. So, don’t feel like you have to rush to hit one specific date. Use the time now to get things lined up, then jump in when the timing is right for you. As Guaranteed Rate explains: “The best time to buy a home depends on your needs. Certain seasons can give you an advantage when starting your homebuying journey.” Bottom Line If you want to buy a house this year, there’s still a way to make it happen, even with today’s rates. This fall gives you the chance to get some of the best seasonal perks the market has to offer. Want help figuring out when those advantages typically show up in your market? Have a quick conversation with a lender and a local agent about how your market works and the steps you’ll need to take to get ready.
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