According to Realtor.com Research, thirty-year mortgage rates are sitting at seven point four percent right now, with that ten-year Treasury yield holding steady around five point two percent. What's interesting is that September's inflation numbers came in hotter than most people were expecting, and we're seeing some concerning signs in core inflation, which basically means price pressures are spreading beyond just energy costs into other areas of the economy. This sticky inflation trend is actually pointing toward the possibility of another rate increase by the end of the year, with potentially more hikes coming in early twenty twenty seven.
The reality for buyers right now is that mortgage rates above seven percent have really cooled demand. According to Realtor.com, their pending home sales data shows a substantial drop in September as these higher rates keep people on the sidelines. But here's the thing that's important to understand: you don't have to sit and wait. What's happening on the seller side is pretty telling. We're seeing the share of price cuts hit a four-year high in September, which means motivated sellers are actually willing to negotiate more than they have been in years. The fact that sellers aren't pulling their listings off the market at higher rates than last year tells me they're serious about getting deals done.
What I'm seeing locally here in the Bay Area and East Bay is exactly this dynamic playing out. If you're a buyer, now is actually the time to get your finances in order, understand what you can afford, and stay engaged with the market. The rate environment probably won't ease up in the near term, but sellers who want to move their properties are more flexible than they've been. For sellers, pricing realistically and being willing to work with buyers is increasingly what it takes to actually get transactions across the finish line.
