If you’ve been watching mortgage rates lately, you might feel a little stuck. Rates climbed above 7% this year, and a lot of buyers have decided to sit tight and wait for them to come back down.But rates are only half the story. When you buy a home, you usually get one of two things: low rates or negotiating power. It’s rare to get both at the same time. And right now, you have a lot more of that second one than you might think.Why Low Rates and Leverage Don’t Usually Show Up TogetherThink back to 2020 and 2021. Rates were near 3%, and buyers rushed into the housing market. Those low rates sounded great, but they came with a catch. There were a lot of buyers just like you that you had to compete with – and there weren’t enough homes for sale to meet that demand. That’s why homes got multiple offers, buyers paid over asking or waived inspections, and sellers held all the cards. Jake Krimmel, Senior Economist at Realtor.com, shows just how one-sided things got:

“Seller’s markets peaked at 98 of 100 metros in spring 2022 after two years of mortgage rates near 3%.”

Then, in the second half of 2022, rates went up. As a result, the number of people buying homes went down, inventory grew, and the balance slowly started tipping from sellers back to buyers. Fast forward to today, and that flip is officially here. In a recent report, Realtor.com found about two-thirds (66) of the top 100 metros now lean in favor of buyers (see graph below):And while you may want lower rates, this shift in power has its own perks.What Your Leverage Looks Like Right NowThere are more homes for sale than there have been in years. And in a more buyer-friendly market like that, it means sellers have to work harder to get their homes sold. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Higher inventory and lengthening days on market give buyers improved negotiating power.”

That shows up in the deals buyers are getting. According to Redfin, nearly half of buyers now get some kind of concession from the seller – like help with closing costs, money for repairs, or even the seller paying to buy down your mortgage rate (see graph below):So when you find a home you love, even if the rate isn’t what you necessarily wanted, there are other levers to pull. Ask about a price cut or a seller-paid rate buydown, too. It could take some of the sting out of today’s rates.Why Waiting for Lower Rates Could BackfireAnd just in case you’re still thinking you’ll just hold off until rates drop, here’s what you should know. Experts at Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo don’t expect rates to fall much through 2027 (see graph below):And here’s the whole point. Even if rates did drop in a big way, a lot of buyers would rush back in. More competition means fewer deals, fewer concessions, and sellers getting the upper hand again.So waiting comes with a trade-off. You might land a better rate down the road, but you’d probably give up the bargaining power you have today.That doesn’t mean you have to move right now. You should only buy when the numbers work for you. But if you’ve got a real reason to move, today’s leverage could help make your numbers work – even at today’s rates.Bottom LineBuyers rarely get low rates and strong negotiating power at the same time, and today’s market is handing you the leverage. Connect with a local real estate agent to find homes where sellers may be open to covering a rate buydown or closing costs, so you can see if today’s market can work for your budget.

In today’s market, a growing number of sellers are opting to do something called a price cut – especially when their house has been on the market for a while without any bites.According to HousingWire Data as many as 4 in 10 (43%) sellers are going this route – that’s the highest it’s been in 4 years. But what if there’s another (potentially better option) for your bottom line? And it’s just as appealing, if not more so, to today’s buyers?Enter the rate buydown.Why Buyers Expect a DealFirst, let’s set the stage on why some compromise may be necessary in today’s market.In September, Redfin says there were 63% more sellers than buyers in the market. And with so many sellers active and relatively few buyers by comparison, those purchasers are realizing they have more power. And as mortgage rates continue to put a squeeze on their budgets, they’re leaning in and using it.One of the most common negotiation points? The price.That’s because they want to feel like they’re getting a deal and they want to see their monthly payment drop. And since buyers can’t control rates, the price feels like the most obvious lever to pull.But the savviest sellers realize being flexible doesn’t always mean a lower price, paying for a buyer’s rate buydown might work better.What Is a Rate Buydown?A buydown is money paid at closing to lower the buyer’s mortgage rate. When you pay it as the seller, you are paying some of the buyer’s interest ahead of time, so the buyer gets a lower rate and monthly payment. And that’s especially appealing to today’s buyers.Temporary buydowns lower the rate for the first few years, then it goes back to the full rate. The more years a buydown covers, the more it costs. These work well for buyers who expect to refinance within a certain amount of time.A permanent buydown lowers the rate for the whole loan. These are paid for with “discount points.” One point costs 1% of the loan. According to FICO, each point generally lowers the rate by about a quarter of a percent. This type of buydown works well for buyers who plan to stay in the home for a long time.Same Money, Different ResultsAnd here’s why these can be a win-win for both buyers and sellers. Rate buydowns help sellers stand out in a crowded market and they can have a bigger impact on your buyer than a price cut would.Here’s an example to show you what that could look like. Let’s say you’re willing to make a $10,000 concession to help get the deal done. Take a look at these three ways to spend that money and the impact they could have on a buyer’s $420,000, 30-year fixed loan at 7%:It’s the same $10,000 from the seller. But a 2-1 buydown saves the buyer about eight times more each month in the first year.And since most buyers shop by monthly payment, that’s what grabs their attention.That’s what makes a rate buydown worth considering. Instead of reducing your asking price, you may be able to use that same money to have a bigger impact on your buyer’s monthly payments. And depending on what matters most to that buyer, the immediate savings could be more appealing than a price reduction.The key is working with your agent and the buyer’s lender to compare the options and see which one makes the most sense.Things To KnowLoan programs cap how much a seller can pay toward a buyer’s costs. Money toward buydowns doesn’t limit what else a buyer may ask a seller to pay for. Buyers may still ask for repairs or other concessions.Putting the buydown offer in your listing lets agents and buyers know it’s an option.Your agent can run scenarios on buydowns and other costs of selling in advance so you’re prepared when an offer comes in.As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Home sellers need to be realistic about local market conditions, which could require price discounts and other incentives to attract buyers.”

And sellers who offer solutions like buydowns can make meaningful impact where home buyers need it most: in their wallets.Bottom LineWhen you’re looking for ways to make your house more appealing to buyers, a price reduction isn’t your only option. A mortgage rate buydown could help a buyer save more each month, especially in the early years of their loan.Talk to your agent or a trusted lender which incentives could make the biggest difference for buyers in our market, while still protecting your bottom line.

If you’re following the housing market, you may have heard the term “silver tsunami” lately. It’s the idea that millions of homes owned by older Americans could come onto the market as more homeowners reach retirement age and make their next move.And when you hear a phrase like that, it’s easy to picture a flood of houses hitting the market all at once. But that picture doesn’t match the data.This isn’t expected to happen overnight. And if you’re planning to sell, it’s not a reason to put your plans on hold. Let’s look at what the research actually says.The Silver Tsunami Will Be More of a Gradual ShiftAccording to Realtor.com, about 13.9 million homes owned by older Americans are expected to change hands by 2036. Sure, that’s a big number. But these homes aren’t all expected to come onto the market at once.The projections show this happening gradually over the next decade, with roughly 1.3 to 1.5 million homes changing hands each year (see graph below):Rather than a sudden wave of houses flooding the market, this is a gradual shift as longtime homeowners make decisions about where and how they want to live.The term silver tsunami makes for a dramatic headline, but the actual data tells a much less dramatic story. And there’s another reason these homes won’t overwhelm the market.The Market Has Room for More HomesAfter the 2008 housing crash, builders significantly slowed construction. And for years afterward, they didn’t build enough homes to keep up with demand. That led to a housing shortage we’re still dealing with today.And just how big a gap are we talking about? Estimates vary, but many experts say the U.S. is still millions of homes short. For example, a recent report from the White House Council of Economic Advisers explains:

“If homebuilding and the growth of the single-family housing stock had continued at their historical pace instead of falling dramatically after 2008, there would be 10 million or more additional single-family homes today.”

As more longtime homeowners sell, those homes will help a gap that’s already there. But they won’t push us over the edge. That’s because, at the same time, more households are expected to form in the decade ahead, and they’ll need homes, too. So, more homes becoming available over time isn’t automatically a bad thing. It can give buyers more options and help create a more balanced housing market moving forward.What Actually Matters When You SellHere’s the takeaway if you’re thinking about selling your house. The silver tsunami isn’t something you need to plan your move around. What’s happening in your local market is far more important than a national projection about the next decade.That’s because real estate is local. Some markets have more homes for sale than others. Some are seeing houses sell relatively quickly, while others are taking longer.And those are the conditions that matter when you’re deciding how to price, prepare, and market your house.For example, an agent who knows your area can help you understand:How many homes are for sale nearby. This tells you how much choice buyers have and how your house will compare.What similar houses are actually selling for. That’s one of the most important factors in setting a competitive asking price.What buyers are looking for right now. Knowing which features and improvements matter most can help your house make a strong first impression.And that’s something you can act on today, regardless of what happens with the silver tsunami over the next decade.The right strategy starts with understanding your local market and making decisions based on what’s happening there, not what a dramatic national headline suggests might happen years from now.Bottom LineThe silver tsunami may sound like a major wave of homes coming onto the market, but the research points to a gradual shift over the next decade, not a sudden flood of listings.If you’re thinking about selling, don’t let that headline make you second-guess your plans. Talk to an agent about what’s happening in your local market.