With mortgage rates holding above 7%, I know many buyers are feeling the pressure as affordability remains a key concern. As someone who guides clients through these market shifts, I’ve seen how higher Treasury yields can impact borrowing costs and shape the home financing journey. Planning ahead is essential: recent studies highlight the value of building a rate cushion—consider anticipating a half-point move within 3 months, three-quarters in 6 months, and a full point over the course of a year.
Interestingly, those who buy later in the year often have more leverage. Typical homes were around 5% less expensive in early Q4 compared to late Q2, with fewer buyers competing and extra time to negotiate. With about a five-month supply of homes last month, buyers have found themselves in a stronger position to discuss price, closing costs, discount points, or even temporary rate buydowns. While markets have recently priced in additional Fed tightening, the long-term outlook still aims for cooler inflation, which could eventually help ease mortgage costs. As always, understanding these dynamics can make a real difference as you plan your next steps.
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