Higher Rates = More Opportunities?

Rates remain the story this week, and they’ve been anything but calm. After Freddie Mac’s survey put the 30-year fixed at 7.28% on October 1, the highest since November 2023, daily rates kept swinging. Zillow’s 30-year average hit 7.52% on October 8, then dropped 18 basis points the next day, before rising again across nearly every loan type on October 10. The volatility tracks a jumpy bond market. Fannie Mae and the MBA broadly expect rates to stay in the 7% to 7.5% rangefor the rest of the year. Expect Freddie Mac’s next weekly reading on Thursday to reflect that back-and-forth.
Price reductions and seller help! The market keeps tilting toward buyers. Inventory reached 1.62 million homes, the first time above 1.6 million since November 2019, and supply is at 4.9 months, the highest in more than a decade. Sellers are adjusting. 20.8% of listings had a price cut in September, a record for that month, and sellers gave concessions in 44.7% of August sales, the highest August share since at least 2020. Sales remain sluggish. Existing-home sales fell to a 3.98 million annual pacein August, the first drop below 4 million since June 2025. Prices are still edging up, with the median at $429,100, up 1.6% from a year earlier.
Terms, not rate or price!  For buyers who can manage today’s payment, this is one of the best negotiating windows in years. More selection, motivated sellers, and widespread concessions mean the conversation can shift from “what’s the rate?” to “how do we structure the deal?” A seller-funded 2-1 buydown, closing cost credits, or a 5/1 ARM can bring the early payments down meaningfully, while a refinance or recast stays available if rates ease later. With rates this volatile, the advisors who stay in close touch with clients and can explain each day’s move will stand out.