Lowest Rates of 2025 Could Shift Buyer Power

After Fed Chair Powell’s speech at Jackson Hole signaled the Fed may cut rates soon, mortgage rates dropped to their lowest level of 2025. That’s encouraging news for homebuyers—lower rates mean lower monthly payments and better affordability.

But here’s the catch: when rates fall, demand tends to surge. And if demand picks up too quickly, today’s buyers could lose some of the leverage they currently have in negotiations.

Why Buyers Still Hold the Advantage

• 🏡 Inventory is steady – Homes are staying on the market long enough for buyers to shop and compare.

• 💰 Sellers are still motivated – Many are willing to negotiate on price or concessions, especially with buyers ready to close quickly.

• ⏳ Timing is everything – Locking in before demand spikes keeps buyers in the driver’s seat.

What Could Change Soon

If rates continue to dip, more buyers will enter the market, creating multiple-offer situations and increasing competition. That could reduce negotiation room and push prices upward.

What This Means for You

Right now, buyers enjoy the perfect balance:
✅ Low mortgage rates
✅ Negotiation power
✅ A variety of homes on the market

This unique window may not last long. Acting now could mean capturing affordability and leverage before the market shifts in favor of sellers.

Curious what this means for your buying power? Let’s run the numbers and find out what you can afford today before conditions change.


EO&A Team


Elizabeth, Anne, Ian, Ksenia, Cliff, Annie, Erica, Mike, Beth, Nina, Sidra, Karen

707.312.0819
hello@eoanda.com
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