Why You Should Ask for a Rate Buydown Right Now
October 9, 2026 1:31Dan Ardis, NMLS# 1412272
Mortgage rates just hit 7.40%, the highest since November 2023. When fewer buyers can qualify, sellers have to work harder, and that gives you leverage. Instead of only fighting over price, ask for a seller credit toward a rate buydown. On a $400,000 loan, a quarter-point buydown saves about $68 a month for as long as you keep the loan.
Mortgage rates hit 7.4%, but you can flip the script on sellers.
With fewer buyers qualifying, sellers face real pressure to close, giving you the upper hand. Instead of battling over the list price, focus on negotiating seller credits to fund a rate buydown. This housing market shift is your chance to protect your monthly payment.
Key Points from This Video
- Freddie Mac 30-year fixed: 7.40%, up from 7.28% last week and 6.30% a year ago. Seventh straight weekly increase.
- Freddie Mac 15-year fixed: 6.73%, up from 6.60%. Lower rate, higher payment.
- Payment impact: about $33 a month more than last week on a $400,000 loan, and about $294 more than a year ago.
- 10-year Treasury: averaged about 5.28%. Mortgage rates track this closely.
- Europe bond selloff: pushed global yields higher and added to volatility here.
- Fed minutes: most members still lean toward another hike by year end, but softer inflation has cut October odds. Next meetings: October 28 and December 9.
- Fed Funds Rate vs mortgage rates: the Fed sets an overnight bank rate, not your mortgage rate.
- Home prices (Cotality, August): down 0.1% for the month, up 1.8% for the year. Steady, not falling.
- Initial jobless claims: 197,000. The labor market is still holding up.
- Continuing claims: around 1.72 million. Part of the drop may be people running out of benefits.
Dan Ardis is a Bakersfield-based mortgage broker with 20+ years in the industry, including experience as a Senior Specialty Underwriter. He originates residential and commercial loans for Kern County clients and in 49 states through Barrett Financial Group.
More Videos from Dan
Why you should ask for a rate buydown
Why 7% mortgage rates aren't the end of the world
First Fed Hike in 3 Years, and It's Not the Last...
The hidden leverage you have as a buyer right now
Why Your Mortgage Payment Depends On This Report
Why You Shouldn't Wait For A Housing Crash
Questions After Watching?
Dan answers mortgage questions for Bakersfield buyers and investors. Call (661) 342-9381 or get pre-approved online.