🚨 Waiting for Lower Rates? You May Be Giving Up Your Biggest Advantage.
Mortgage rates remain elevated, and we’re seeing the impact show up clearly in housing activity.
Pending home sales are now 4.7% lower than this time last year, and the latest monthly report showed essentially no growth after revisions.
At first glance, that doesn't sound like good news for housing.
But for buyers who are financially ready to purchase, a slower market can create opportunities that disappear when rates eventually improve.
Less competition. More time to make decisions. More negotiating power. And, in some cases, sellers who are more willing to help with closing costs or financing.
So instead of asking only:
“When will rates come down?”
There may be another question worth asking:
“What can I negotiate while everyone else is waiting?”
Here’s what your clients need to know this week.
📰 What’s Happening
HIGHER RATES ARE CLEARLY SLOWING HOME SALES
Pending home sales were essentially flat in August after the previous month was revised lower.
More importantly, pending sales are down 4.7% compared with last year.
Translation:
Higher mortgage rates are affecting affordability, and some buyers have moved to the sidelines.
That's challenging for the overall housing market.
But an individual buyer isn't buying the entire housing market.
They're buying one house.
And fewer buyers competing for that house can sometimes create leverage.
THE OPPORTUNITY MAY BE IN THE NEGOTIATION
When competition slows, buyers may have opportunities that are much harder to find in a hot market.
Depending on the property and seller, that could mean:
Seller-paid closing costs
Credits toward a temporary or permanent rate buydown
More flexibility on price
Repair negotiations
Longer or more protective contingencies
None of those are guaranteed. But they become much more realistic conversations when a seller isn't choosing between 10 offers.
Translation:
The interest rate is only one piece of the deal.
The terms you negotiate matter too.
WHY WAITING FOR LOWER RATES ISN'T AUTOMATICALLY THE BETTER STRATEGY
This is where buyers should think beyond today's payment.
Let's say mortgage rates eventually improve enough to bring a meaningful number of buyers back into the market.
That's great for affordability. But those buyers could also be competing against more people for the same homes.
That can mean fewer seller concessions, faster decisions and potentially more competition on price.
So there are really two sides to the equation:
Today's market: Higher financing costs + potentially more negotiating leverage
A future lower-rate market: Better financing costs + potentially more buyer competition
We don't know exactly how that tradeoff will play out.
That's why we think buyers should compare the actual numbers instead of assuming waiting automatically wins.
WHY MORTGAGE RATES ARE STILL VOLATILE
Oil prices have come off their recent highs, but energy remains an important part of the inflation story.
Meanwhile, global interest rates and bond markets continue to move around significantly.
You don't need to understand all the technical details.
Here's what matters: Mortgage rates are still in a volatile environment, and there isn't a clear straight-line path lower right now.
That means waiting specifically for the “perfect rate” could be frustrating. A better strategy is knowing what payment works for you and evaluating opportunities as they appear.
WHAT THIS MEANS FOR YOUR CLIENTS
🏡 BUYERS
Instead of asking us only:
“What's the rate?”
Try asking:
“What's the best deal we can build around this house?”
Could the seller contribute toward closing costs?
Could we use a credit to reduce the interest rate?
Would a price reduction or seller credit save you more?
Could we negotiate repairs that preserve your cash?
That's where today's market can get interesting.
🏷️ SELLERS
Today's buyers are extremely payment sensitive.
If your home isn't getting the activity you expected, price isn't necessarily the only lever available.
Strategically offering a seller credit toward a buyer's financing or closing costs may help address the affordability problem directly.
We can help your Realtor compare the numbers before simply reducing the price.
🔑 HOMEOWNERS
If you're waiting for a refinance opportunity, stay focused on your number, not every daily rate movement.
Know the payment savings that would make refinancing worthwhile.
Then when the market reaches that point, you're prepared to act.
THE KD TEAM TAKEAWAY: DON'T JUST SHOP THE RATE. SHOP THE DEAL.
This is the conversation I think buyers are missing right now. Everyone is focused on getting the lowest possible interest rate.
Of course the rate matters.
But the best rate doesn't automatically equal the best opportunity.
Imagine getting a slightly lower rate six months from now but competing against multiple buyers and receiving no seller concessions. Now compare that with buying today and potentially negotiating a seller credit, closing-cost assistance or a better purchase price.
Which one wins?
We don't have to guess. We can run the numbers.
That's why this week's opportunity isn't about convincing buyers that now is the perfect time to buy.
It's about helping them recognize that a slower market gives them something valuable: leverage.
🎯 INTRODUCING: THE DEAL BUILDER
Have a buyer who likes a home but doesn't love the payment?
Before they walk away, send us the listing.
We'll help you build a Deal Builder Scenario comparing different ways to structure the offer:
✓ Price reduction vs. seller credit
✓ Rate buydown options
✓ Estimated monthly-payment savings
✓ Cash-to-close strategies
✓ Different down-payment scenarios
✓ What the seller concession actually buys your client
👉 Send us the listing and say “BUILD THE DEAL.”
We'll help you determine where the seller's dollars could have the biggest impact for your buyer.
Because in a slower market, the opportunity isn't always finding a cheaper rate.
Sometimes it's negotiating a better deal.
Kaelen + Deanna | KD Team
SOURCE: MBS HIGHWAY | Barry Habib + Team, Morning Update