As someone who transitioned from international finance to residential real estate, I’ve witnessed firsthand how shifts in interest rates can ripple through the housing market. With the Fed’s benchmark rate climbing to around 4%, and 30-year mortgage rates nearing 7%, affordability has seen a significant shake-up for many buyers. Higher mortgage costs have trimmed purchasing power, which means fewer qualified buyers, more conservative offers, and sellers recalibrating their price expectations. For those of us helping clients navigate these waters, competitive pricing, thoughtful presentation, and a willingness to negotiate on repairs or closing costs have become crucial strategies. While increased rates have undeniably cooled demand, they haven’t addressed broader supply issues—such as energy disruptions—that continue to impact the market. The real challenge remains: addressing inflation without destabilizing the economy. With further rate increases on the horizon, both buyers and sellers are adjusting to a new landscape, and careful negotiation is more important than ever.
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