What Every Agent Should Know:--- With mortgage rates challenging affordability and buyers hesitant to make decisions, sellers are increasingly willing to negotiate. But here's a question every REALTOR® should consider:--- Is your buyer better off negotiating a lower purchase price—or asking the seller to contribute toward a permanently lower interest rate?--- A price reduction lowers the mortgage balance, but the resulting monthly payment savings may be surprisingly small.--- Alternatively, a seller contribution toward a permanent interest-rate buydown could provide substantially greater monthly payment relief, even with a higher purchase price.--- But what if mortgage rates decline in the next 6, 12, or 24 months?--- That's the question nobody can answer with certainty.--- A buyer who negotiates a larger price reduction may benefit from a lower loan balance and potentially refinance if rates decline. A buyer who secures a permanently lower rate benefits immediately, without depending on future market conditions.--- Both strategies have merit. The right answer depends on the numbers, the buyer's financial priorities, and how long they expect to keep the mortgage.--- For listing agents, this creates another negotiating opportunity. A seller contribution toward financing costs may be more attractive to a payment-conscious buyer than another reduction in asking price.--- Before your buyer requests a price reduction—or your seller agrees to one—give me a call.--- Let's compare the alternatives. Sometimes the smartest negotiation isn't about the price. It's about how the transaction is structured.--- EQUAL HOUSING LENDER--- https://apply.planethomelending.com/#/loan-officers/tpayne%40planethomelending
| Rate | Change | Points | |
|---|---|---|---|
| 30YR Fixed | 7.35% | +0.02 | -- |
| 15YR Fixed | 7.00% | -0.01 | -- |
| 30YR FHA | 6.99% | +0.01 | -- |
| 30YR Jumbo | 7.60% | 0.00 | -- |
| 7/6 SOFR | 6.86% | +0.01 | -- |
| 30YR VA | 7.00% | +0.01 | -- |
| Rate | Change | Points | |
|---|---|---|---|
| 30YR Fixed | 7.41% | +0.29 | 0.75 |
| 15YR Fixed | 6.73% | +0.30 | 0.73 |
| 30YR FHA | 7.13% | +0.35 | 1.15 |
| 30YR Jumbo | 7.33% | +0.18 | 0.60 |
| 7/6 SOFR | 6.46% | +0.36 | 1.11 |
| Value | Change | |
|---|---|---|
| Mortgage Apps | 188.6 | -5.32% |
| Existing Home Sales | 3.99M | 0.25% |
| Builder Confidence | 29 | -9.38% |
| Building Permits | 1.4M | 0.43% |
| Housing Starts | 1.22M | -4.24% |