If you’ve been keeping an eye on mortgage rates, you may be wondering if now is really the right time to buy. Rates have been higher than many buyers would like, and it’s understandable that some people are choosing to wait for a better number.
But there’s another side of the market worth paying attention to: negotiating power.
The truth is, buyers don't always get low mortgage rates and plenty of room to negotiate at the same time. And right now, there are opportunities worth considering, even with rates where they are.
Low Rates and Buyer Leverage Don't Usually Come Together
Think back to 2020 and 2021. Mortgage rates were around 3%, and buyers flooded the market. While those rates were attractive, competition was intense. There weren't enough homes available to keep up with demand.
Buyers were competing with multiple offers, paying above asking price, and sometimes giving up inspections just to get a home. Sellers had the advantage.
According to Realtor.com, seller-friendly markets reached their peak in 98 of the 100 largest metro areas in spring 2022.
Things began to change when mortgage rates started climbing in the second half of 2022. Buyer activity slowed, more homes became available, and the balance gradually shifted.
Today, that shift is creating more opportunities for buyers. Realtor.com reports that roughly two-thirds of the top 100 metro areas now favor buyers.
What Does That Mean for Buyers Today?
More homes on the market means buyers have more choices. It also means sellers may need to be more flexible to get their homes sold.
As Lawrence Yun, Chief Economist at the National Association of Realtors, explains, higher inventory and longer selling times give buyers more negotiating power.
And we're seeing that play out in actual transactions.
Many buyers are negotiating for seller concessions, which can include help with closing costs, repair credits, or even money toward buying down their mortgage rate.
So, when you find a home you like, don't assume the asking price and advertised rate are the only things to consider. There may be room to negotiate a deal that makes more sense for your budget.
Is Waiting for Lower Rates the Best Strategy?
This is where things get interesting.
Many buyers are holding off because they hope mortgage rates will come down. That's understandable, but waiting doesn't automatically mean you'll get a better deal.
Current forecasts from housing and mortgage industry experts suggest rates may not change dramatically through 2027.
And if rates do come down, more buyers could return to the market. That means more competition, potentially higher prices, and fewer sellers willing to offer concessions.
In other words, the lower rate you've been waiting for could come with a more competitive market.
That doesn't mean everyone should rush out and buy a home. Your budget, plans, and comfort level should always come first. But if a move makes sense for you right now, it's worth looking at what today's market has to offer.
The Bottom Line
Buying a home isn't just about getting the lowest possible mortgage rate. It's also about the price you pay, the terms you negotiate, and how comfortable the overall monthly payment feels.
Right now, buyers may have more room to negotiate than they've had in years. That could mean a better purchase price, help with closing costs, or other concessions that make a difference.
If you've been thinking about making a move, let's take a look at what's available around Lake Norman and see where the opportunities are.
You might have more negotiating power than you think.
