Low Rates or Lots of Leverage? Buyers Rarely Get Both.

If you’ve been watching mortgage rates lately, you might feel a little stuck. Rates climbed above 7% this year, and a lot of buyers have decided to sit tight and wait for them to come back down.

But rates are only half the story. When you buy a home, you usually get one of two things: low rates or negotiating power. It’s rare to get both at the same time. And right now, you have a lot more of that second one than you might think.

Why Low Rates and Leverage Don’t Usually Show Up Together

Think back to 2020 and 2021. Rates were near 3%, and buyers rushed into the housing market. Those low rates sounded great, but they came with a catch. There were a lot of buyers just like you that you had to compete with – and there weren’t enough homes for sale to meet that demand.

That’s why homes got multiple offers, buyers paid over asking or waived inspections, and sellers held all the cards. Jake Krimmel, Senior Economist at Realtor.com, shows just how one-sided things got:

“Seller’s markets peaked at 98 of 100 metros in spring 2022 after two years of mortgage rates near 3%.”

Then, in the second half of 2022, rates went up. As a result, the number of people buying homes went down, inventory grew, and the balance slowly started tipping from sellers back to buyers. Fast forward to today, and that flip is officially here.

In a recent report, Realtor.com found about two-thirds (66) of the top 100 metros now lean in favor of buyers (see graph below):

Real estate infographic titled “Buyers Have Gained Leverage as Rates Have Risen” comparing buyer-leaning and seller-leaning housing markets across the top 100 U.S. metropolitan areas in September 2022 and September 2026. Two pie charts illustrate a significant shift in market conditions. In September 2022, 98 markets favored sellers while only 2 favored buyers. By September 2026, 66 markets favored buyers and 33 favored sellers. The data highlights how higher mortgage interest rates, changing housing inventory, and affordability pressures have shifted negotiating leverage toward homebuyers. This national housing market trend provides useful context for buyers and sellers evaluating real estate opportunities in Allen, Plano, Fairview, McKinney, Frisco, Dallas, and surrounding North Texas communities. Local market conditions may differ based on neighborhood, price range, property type, and available inventory. Source: Realtor.com, via Keeping Current Matters (KCM).

And while you may want lower rates, this shift in power has its own perks.

What Your Leverage Looks Like Right Now

There are more homes for sale than there have been in years. And in a more buyer-friendly market like that, it means sellers have to work harder to get their homes sold. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Higher inventory and lengthening days on market give buyers improved negotiating power.”

That shows up in the deals buyers are getting. According to Redfin, nearly half of buyers now get some kind of concession from the seller – like help with closing costs, money for repairs, or even the seller paying to buy down your mortgage rate (see graph below):

Real estate infographic titled “Nearly Half of Homebuyers Get Concessions from Sellers” showing the percentage of U.S. home sales involving seller concessions during August from 2020 through 2026. According to Redfin, seller concessions increased from 24.1% in August 2021 to 44.7% in August 2026, the highest percentage shown in the seven-year comparison. Other figures include 40.1% in 2020, 27.6% in 2022, 34.8% in 2023, 35.3% in 2024, and 42.6% in 2025. The chart highlights growing opportunities for homebuyers to negotiate seller contributions toward closing costs, mortgage rate buydowns, and other transaction expenses. These national trends provide useful context for buyers and sellers in Allen, Plano, Fairview, McKinney, Frisco, Dallas, and surrounding North Texas real estate markets. Actual seller concessions depend on local housing inventory, property condition, price range, and negotiating conditions. Source: Redfin, via Keeping Current Matters (KCM).

So when you find a home you love, even if the rate isn’t what you necessarily wanted, there are other levers to pull. Ask about a price cut or a seller-paid rate buydown, too. It could take some of the sting out of today’s rates.

Why Waiting for Lower Rates Could Backfire

And just in case you’re still thinking you’ll just hold off until rates drop, here’s what you should know. Experts at Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo don’t expect rates to fall much through 2027 (see graph below):

Real estate infographic titled “Experts Don’t See Rates Dropping Much Through 2027” comparing 30-year fixed mortgage rate forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo. The chart shows a stated current mortgage rate of 7.3% and quarterly projections from Q4 2026 through Q4 2027. Average forecasted mortgage rates decline slightly from 7.27% in Q4 2026 to 7.25% in Q1 2027, 7.23% in Q2, 7.22% in Q3, and 7.17% in Q4 2027. By the end of 2027, Fannie Mae projects 7.5%, MBA forecasts 7.1%, and Wells Fargo anticipates 6.9%. These national mortgage rate projections suggest limited interest rate relief for homebuyers and highlight the importance of evaluating financing options, monthly payments, and housing affordability. The information provides useful context for buyers and sellers in Allen, Plano, Fairview, McKinney, Frisco, Dallas, and surrounding North Texas real estate markets. Forecasts are estimates, not guaranteed future rates or current lender quotes. Source: Keeping Current Matters (KCM), using forecasts from Fannie Mae, MBA, and Wells Fargo.

And here’s the whole point. Even if rates did drop in a big way, a lot of buyers would rush back in. More competition means fewer deals, fewer concessions, and sellers getting the upper hand again.

So waiting comes with a trade-off. You might land a better rate down the road, but you’d probably give up the bargaining power you have today.

That doesn’t mean you have to move right now. You should only buy when the numbers work for you. But if you’ve got a real reason to move, today’s leverage could help make your numbers work – even at today’s rates.