To offset affordability pressures, buyers are increasingly turning to interest rate buydowns and adjustable-rate mortgages
A majority of prospective homebuyers remained on the sidelines this fall, anticipating further declines in mortgage rates. This trend that has put the brakes on market activity and left both buyers and sellers in a holding pattern, according to a new CNBC Housing Market Survey.
The survey, which polled 54 real estate agents nationwide between September 22 and 30, found that nearly three-quarters of agents reported their clients expected mortgage rates to drop further. “
The average 30-year fixed mortgage rate has slipped to 6.19%, its lowest level in 2025 so far, according to Freddie Mac. Yet, affordability remains the top concern for buyers, followed by economic uncertainty.
“Sellers are still pricing for a seller’s market, and buyers are willing to wait for prices and rates to drop. It is a bit of a standoff, and folks are only moving if they absolutely must,” said Katie Kosnar, an agent in North Carolina.
She added, “Right-sizing used to be a driving factor, but most sellers I’ve encountered will be paying a higher mortgage for a smaller house and just aren’t willing to make that move.”
Buyers turn to alternative financing strategies
To offset affordability pressures, buyers are increasingly turning to interest rate buydowns and adjustable-rate mortgages.
About 40% of agents said their clients are borrowing from family or friends to afford a home, while many are compromising on size, location, or features to bring prices within reach.
Many potential buyers are hesitant to move forward because homes feel out of reach and the process is intimidating. Mortgage brokers face the task of helping first-time buyers work through their fears—especially when those buyers don’t qualify for the mortgage they want.
Ross Sykes, a mortgage advisor with Homefront Lending LLC, said it’s essential not just to tell those buyers no, but to guide them and provide a path for them to eventually get the house they want. It just might take a little longer than the buyers had hoped.
"What you say behind that makes a difference. It’s not, ‘No. I can't help you.’ It is, ‘No, but it doesn’t mean no forever,’" he told Mortgage Professional America.
“It means no, right now, let's get you on a path, so we can put you in a position where that no turns to yes. I have people all the time that I've given denials to who come back and qualify."
Sellers reduce prices as homes linger
On the other side, sellers’ primary concern is how long it will take to find a buyer. Nearly 89% of agents reported at least one seller reducing their asking price, and almost a third said more than half their sellers had dropped prices.
Roughly 40% of agents had at least one seller delist their home, hoping to secure a better price later.
Inventory ticks up but remains tight
Existing-home sales in the United States posted a 1.5% gain in September, reaching a seasonally adjusted annual rate of 4.06 million units, according to the latest National Association of REALTORS (NAR) Existing-Home Sales Report.
However, inventory challenges persisted. September’s 1.55 million units represented a 4.6-month supply at the current sales pace, up from 4.2 months a year ago. Properties typically stayed on the market for 33 days, compared to 28 days last September.
First-time buyers made up 30% of transactions, up from 26% a year earlier, but still below the 40% share many experts consider healthy for market growth.
“For buyers, low inventory and mortgage rates, from an affordability standpoint, are still a challenge,” said Holly David, an agent in Richmond, Virginia.
“For sellers who are locked in to a 3% [mortgage] rate, even though they may have a housing want or need, they may not be willing or able to make a move.”
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