Good morning, NREB readers.
As always, we’re here to keep real estate professionals informed while cutting out the fluff. Let’s get right into it.

A buyer can have more homes to tour and still struggle to find one they can comfortably afford.

This week’s housing reports help explain why. NAR’s September data show more existing homes available for sale than a year earlier. Meanwhile, Freddie Mac’s latest weekly mortgage survey puts the average 30-year fixed rate at 7.40%.

For agents, that combination calls for a careful conversation: more choice can improve a buyer’s negotiating position without improving their budget.

NAR’s October 13 release reported:

That last figure is a seasonally adjusted annual rate, not the number of homes sold during September.

There is a timing distinction worth keeping in mind, too. Existing-home sales measure completed transactions. They do not tell you how buyers are responding to this week’s financing costs.

The useful reading is that inventory has improved while transaction activity remains below last year’s pace. That gives you a reason to examine local competition more closely, without assuming every seller is ready to negotiate.

Freddie Mac’s October 15 survey showed the 30-year fixed mortgage averaging 7.40%, unchanged from the previous week and above 6.27% a year earlier.

Here is what that rate difference means in a simple illustration. On the same $400,000 loan, fully amortized over 30 years:

That is roughly $300 more per month.

The home price and loan amount have not changed in this example. Only the rate has.

These are illustrative payments, not lender quotes. Taxes, insurance, any mortgage insurance, and HOA dues would add to the housing budget. Freddie Mac’s survey focuses on conventional, conforming purchase loans with 20% down and excellent credit; an individual borrower’s terms can differ.

A seller may see the national median rising and conclude that their asking price should hold.

But the median describes the homes that sold. It does not measure how much every individual property appreciated. Changes in the mix of sales can move that number.

For a listing appointment, the more useful comparison is the set of homes a buyer could reasonably choose instead: similar location, size, condition, and price.

Are those homes attracting offers? Have competing sellers reduced their prices? Is your listing offering something buyers value enough to pay more for?

A national increase does not answer those questions. Neither does a national inventory increase prove that a particular property needs a discount.

Before the next round of showings, separate two questions.

What can this buyer comfortably carry? Ask the lender to refresh the financing numbers if the search still relies on an older estimate. Include the costs attached to the specific property, especially taxes, insurance, and association dues.

What alternatives does this buyer actually have? Look within their workable budget and requirements. Ten additional listings across the metro area may not help if none fit their search.

Where comparable homes are sitting and sellers are making adjustments, there may be room to discuss price, terms, or condition. Where well-priced homes are still attracting competition, prepare the buyer for that reality.

The opportunity is property-specific. The payment is borrower-specific.

Bring a current financing estimate and a current set of competing listings.

For buyers, those two pieces show whether the wider selection includes homes that actually work for them. For sellers, they help explain what their asking price looks like to the people shopping today.

More inventory is useful. Turning it into a realistic set of choices is where an agent earns the client’s trust.

Sources

Payment examples are NREB calculations using a hypothetical $400,000 loan, a 30-year term, and the stated fixed interest rates. Figures are rounded and exclude taxes, insurance, HOA dues, and closing costs.

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