NEW YORK, NY — Higher-than-expected mortgage rates have not stopped a broad shift in housing conditions toward buyers. Redfin said in an analysis published Aug. 13 that nearly 80% of major U.S. metropolitan areas are now buyer’s markets, after a record-low month for demand.
The change matters because buyer’s markets give shoppers more leverage when homes sit longer and sellers compete for fewer active buyers. Redfin defines a buyer’s market as one where sellers outnumber buyers by at least 10%. Nationally, sellers outnumbered buyers by 51% last month, according to the company’s analysis.
What Redfin Measured
Redfin’s reading is based on the balance between people listing homes and people looking to buy them. When supply runs well ahead of demand, homes generally remain on the market longer, and sellers are more likely to cut prices or offer concessions to close a deal.
Hannah Jones, senior economist at Realtor.com, told CNBC Select that conditions now favor buyers more than they have in years, even with rates higher than many expected. She said elevated borrowing costs have kept some would-be buyers on the sidelines, which has reduced competition and left more homes available for shoppers who remain active.
Why Rates Mattered
Housing forecasters ended 2025 expecting mortgage rates to ease into a 6.0% to 6.3% range in 2026. Instead, rates dipped below 6% in February for the first time since 2022, then moved back up after the Iran war began on Feb. 28, which the story says fueled an energy crisis, raised inflation expectations and pushed up 10-year Treasury yields.
That increase flowed into mortgage pricing and helped keep demand muted. Jones said waiting for a perfect combination of low rates and buyer-friendly conditions is difficult because those two developments rarely arrive together. She added that market relief for buyers often appears when rates or economic uncertainty push enough people out of the market to give the rest more negotiating power.
Who May Move Next
For buyers with strong credit and a substantial down payment, the current setup may still produce opportunities because sellers are under more pressure to negotiate. But the article also notes that affordability remains the main test: if the monthly payment is too high at today’s rates, a buyer may need to wait until borrowing costs ease, which some experts expect could take until 2027.
The piece also points readers toward lenders that advertise below-average annual percentage rates, including Better Mortgage, FourLeaf Credit Union and Rocket Mortgage, while noting that FHA loans remain available to borrowers with a 3.5% down payment and a 580 credit score. Consumers can compare options directly with lenders or review product details through the companies named in the story.
More on what homes, rents and new builds are doing near you, on RHS Commoner.
