As of October 1, 30-year mortgage rates are in the mid-7s*. That is a real number that can affect the affordability and monthly payment for buyers. But with economists projecting rates staying in a similar range for the foreseeable future, waiting for rates to drop may not be the best option. 

The good news? It is a buyer’s market in many areas across the country. Here’s how smart homebuyers are using that to their advantage:
 

*Optimal Blue

Ask for a Permanent Rate Buydown. The Market Supports It.

The first thing to understand is that a permanent rate buydown is different from a temporary one. A temporary buydown lowers the rate for the first few years, then returns to the original rate. A permanent buydown uses points paid at closing to lower the rate for the entire life of the loan. With enough points, a buyer can get a 30-year fixed rate in the high 5s locked for 30 years.

The request is simple: include closing costs and points in the offer and let the seller cover it. If they say no, move to the next listing. In most markets, there is one.

The data shows why this option is realistic. Nearly half of all U.S. home sales in August included a seller concession, 44.7%, up from 42.6% a year earlier and the highest August share on record. August was also the strongest buyer's market in Redfin records dating back to 2013. Seller concessions include money toward closing costs, repairs, and mortgage rate buydowns. They are distinct from a price reduction and can be structured specifically to fund points.

Roughly 15.8% of homes that sold in August had both a price drop and a concession, also a record. Sellers are doing whatever it takes to close. Buyers who know how to ask are in a strong position to get it.

Source: Redfin, September 18, 2026

 

This is Especially Effective in Sun Belt Markets

There are even markets where the majority of sellers are already giving concessions. That means that with most home sales, sellers are expecting they’ll have to make a concession to close the deal.

Here are the most common areas in which home sales included a seller concession:

Atlanta, GA: 72.8% 
Charlotte, NC: 67.9%
Phoenix, AZ: 67.4%
Las Vegas, NV: 66.7%
Raleigh, NC: 66.3%
Nashville, TN: 63.1%
Houston, TX: 58.5%
Denver, CO: 58.4%
Riverside, CA: 58.0%
Virginia Beach, VA: 57.7%

Phoenix, Charlotte, and Riverside saw the largest year-over-year increases. Charlotte jumped 9.3 percentage points. Phoenix jumped 15.3 percentage points. Riverside jumped 9.0 percentage points.

Nashville, Houston, and Las Vegas have more than twice as many sellers as buyers. In markets like these, sellers are not holding firm. They are competing for offers.

By contrast, concessions are least common in San Jose (4.2%), New York (5.7%), and San Francisco (18.6%), where demand remains relatively strong and sellers have less pressure to negotiate.

Source: Redfin, September 18, 2026

New Construction Is on Sale. Use It.

For buyers open to new construction, the opportunity is even more direct. Builders are actively funding rate buydowns to move homes and the numbers show how aggressive they have become.

Ask for points, closing costs, and rate buydowns as part of the offer on any new build. Builders expect it. Many are already offering it before buyers even ask.

• 66% of builders reported using sales incentives in September, up from 63% in August, the highest share since December
• 38% cut prices in September, up from 35% in August, with an average price reduction of 6% for the sixth consecutive month
• The median new home sale price was $393,700 in August, down 5.8% from a year ago

Source: NAHB/Wells Fargo Housing Market Index, September 16, 2026

80 to 90% of new home sales now require mortgage rate buydowns to get deals closed. As Cotality Chief Economist Selma Hepp put it: "Homebuilders have become increasingly aggressive in using price cuts, mortgage rate buydowns and other incentives to attract buyers, effectively shifting homes from 'for sale' to 'on sale.'"

Source: HousingWire, September 24, 2026 | Redfin, September 18, 2026

 

 

Get Pre-Approved Before You Start Looking

The best offer strategy starts before you find a home. A pre-approval gives you a clear picture of what you qualify for, what your payment looks like, and how much a seller concession could realistically cover. Walking into negotiations without one puts you at a disadvantage before the conversation even starts.

But a pre-approval is only as useful as the loan officer behind it. The right lender is not just checking boxes. They are helping you understand which loan products fit your situation, how much in seller-paid points is allowable for your loan type, and how to structure an offer that gets you the best possible outcome. That means fewer surprises at closing and a better chance of getting a seller to fund a rate reduction.

Get pre-approved before you start your search. Then work with your loan officer to model what a seller-funded buydown would do to your monthly payment so you know exactly what to ask for when the right home comes along.

Fill out the form below to discuss your options.

Disclaimer : Any actual Seller Credit is paid at closing and is subject to interested party contribution limits. Actual (Seller/Builder) Credit amounts are agreed upon solely between the (Seller/Builder) and the Borrower(s).