Why Wait? This Is The Buyers Time To Play “Let’s Make A Deal”!

The housing market got a little relief on rates this week, but the rest of the picture is still sluggish.  Freddie Mac’s survey showed the 30-year fixed at 7.32% for the week ending October 22, down 8 basis points from 7.40% and the first decline after seven straight weekly increases. The bigger move came in Treasuries: the 10-year yield fell 17 basis points on October 22 to 4.96%, its largest one-day drop of 2026. That suggests mortgage rates may keep drifting lower into the low 7% range. They’re still well above a year ago, when the 30-year was in the low 6% range.
Buyers haven’t come back to the market yet, which is a huge mistake for prospective homebuyers! HousingWire counted about 52,500 homes under contract for the week ending October 23, roughly 23% fewer than a year ago. Redfin’s four-week measure of pending sales hit a record low in data going back to 2021. Inventory keeps building: active listings rose to about 912,000, up 5.7% from a year earlier. Realtor.com’s median listing price was $415,000, down 2.1% from a year ago. Sellers are cutting prices more often, and because the lower rates came only at the end of the week, the contract numbers don’t reflect them yet.
Builders are struggling most. The NAHB/Wells Fargo builder confidence index fell three points to 29 in October, its lowest level since 2012. Buyer traffic dropped to 18, 43% of builders cut prices (the highest share in six years), and 65% offered incentives such as rate buydowns. Housing starts fell to a 1.221 million annual pace in September, and building permits hit a 3.5-year low. Luxury and cash buyers remain the exception, while rate-sensitive first-time and move-up buyers mostly wait.
The big event this week is the Federal Reserve’s rate decision on Wednesday, October 28. The Fed raised its benchmark range to 3.75%–4.00% in September. Thursday brings the PCE inflation report, the Fed’s preferred inflation measure, along with Freddie Mac’s next weekly rate survey. If the Fed holds steady or signals it’s near the end of its hikes, last week’s dip in rates could stick. That would also help borrowers who are near the limits on debt-to-income, loan-to-value or reserves in DU and LPA. A more aggressive Fed would likely push rates back toward 7.5%. Inventory keeps growing.  Listing prices keep dropping. Sellers are willing to play “let’s make a deal”.  This is the time for buyers to be in the market!