Don’t wait to buy a home: Mortgage rates might be surging above 7% but across the US homebuyers are finally getting price cuts and valuable concessions from sellers

For years, prospective homebuyers have been told to wait.

Wait for prices to come down. Wait for mortgage rates to shift back towards rock-bottom pandemic-era rates. Wait until the monthly payment feels a little less painful.

But there’s a big problem with waiting for the real estate stars to align: They may never quite get to where you want them, and you may be missing out on opportunities in the meantime.

Mortgage rates are above 7 percent, a level that would have seemed eye-watering to buyers during the Covid-era housing boom.

Yet the US housing market is undergoing deeper changes that could make conditions more appealing than headlines about the 30-year mortgage suggest.

‘The national housing market has shifted toward greater balance, with some areas now offering more buyer-friendly conditions than we’ve seen in years,’ Realtor.com senior economist Hannah Jones told the Daily Mail.

‘This means more inventory, more room to negotiate, and sellers increasingly willing to work with buyers, which is a meaningful change from the recent seller’s market.’

Jeff Lichtenstein, founder and broker of Echo Fine Properties in Florida, told us he is seeing homes on the market for longer, inventory growing, sellers cutting prices and buyers gaining concessions like help with closing costs, repairs or mortgage rates.

In other words, buyers may finally have something that’s been in desperately short supply for years: bargaining power.

The latest Redfin figures offer a striking snapshot of just how much bargaining power is available. 

More than 21 percent of sellers with active listings cut their asking price during the four weeks ending September 20, according to Redfin – the highest rate for this time of year since 2022.

That doesn’t mean every homeowner is suddenly slashing tens of thousands of dollars from their asking price. 

But it does show how different the market is now compared to the frenzy of recent years, when buyers routinely faced bidding wars and sellers regularly got offers above their asking price.

Redfin reported that nearly half of US homebuyers are now getting some form of seller concession, like money for repairs, help with closing costs or mortgage rate reductions.

Jones said that reluctant buyers should focus on concessions like these to make the overall deal more attractive, rather than fixating on average mortgage rates. 

There is, however, an important catch. Jones warned that ‘affordability remains the real barrier,’ particularly for younger and first-time buyers.

‘At 7 percent+ mortgage rates, many Gen Z and first-time buyers still face real financial constraints,’ she told us.

‘For those with some financial flexibility, whether that’s savings, family support, or improved income, this moment is worth a closer look,’ Jones said.

Rather than rushing into a purchase, buyers should examine what is available in their area, how much they can negotiate and whether they qualify for schemes that can help with a deposit or loan.

‘A softening market creates space to explore options without pressure,’ Jones said.

‘The goal isn’t to push hesitant buyers into something they can’t afford, but to help those who may have counted themselves out understand the market has shifted in their favor in many areas.’

One reason buyers remain on the sidelines is that many are still hoping for a return to the extraordinarily low mortgage rates of the pandemic.

A recent survey from real estate firm Cotality found the median 30-year mortgage rate buyers said would persuade them to return to the market was 4.6 percent. 

Fannie Mae, the Mortgage Bankers’ Association and Wells Fargo all expect average rates to remain well above 6 percent for at least the next two years.

Lichtenstein told the Daily Mail that buyers have an advantage today precisely because sellers are more willing to negotiate.

‘The advantage right now is that sellers are motivated to make a deal,’ he said. ‘I’m seeing more rate buydowns and other strategies. More and more inventory is becoming available.’

Lichtenstein also warns buyers not to assume today’s rates are the peak in the mortgage market. 

‘A 7.5 percent rate might look pretty cheap a few years from now,’ Lichtenstein warned. ‘If rates do go down, you can always refinance. But if they rise to 9 percent, then you’re out of luck.’ 

That doesn’t mean homebuyers should take on a mortgage they cannot afford. But it does challenge the idea that waiting is the safest financial decision.

For those struggling with prices, Lichtenstein suggests being flexible about where and what they buy.

‘Fixer uppers and living in a town one or two counties over sometimes can get you into a better price point as well,’ he said.

Cotality’s research suggests buyers are already making compromises – cutting spending, considering smaller properties or looking beyond their preferred neighborhoods. 

In fact, 28 percent of recent buyers surveyed by Cotality said they moved to a different area in search of more affordable housing.

Cotality found that 78 percent of Gen Z homebuyers would cut spending to afford a home, while 74 percent would consider buying a smaller property.

There’s also a point at which life makes waiting to buy challenging.

‘Life happens. Marriage. Babies. It’s impossible to pause forever. Shelter and owning a home is a basic need,’ said Lichtenstein.

The ability to negotiate can help you make the numbers work.

‘It’s worth checking what’s actually available, what negotiating power looks like in your area, and whether the math could work with programs designed for first-time buyers,’ Jones told us.

That strongly suggests that waiting for the perfect mortgage rate is less important than finding the right home at the right price.