How to negotiate a lower home price in today's economy, according to experts

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If you've been trying to buy a home this year, you've likely seen the wide fluctuations occur in mortgage rates. By late February, the average 30-year fixed mortgage rate had dropped to 5.87%, the lowest point since September 2022, according to Freddie Mac.

Things changes, though, when the war in Iran pushed oil prices and inflation higher, and mortgage rates followed. The average 30-year fixed rate now stands at 6.87% as of early August, a full percentage point higher than it was just a few months ago. On a $375,000 loan, that 1% increase adds about $245 to the monthly payment.

But the news isn't all bad. In some cases, buyers may be able to take advantage of this year's rate volatility to potentially negotiate a lower home price. We asked three mortgage professionals how buyers can do that — and which strategies are working now. Here's what they had to say.

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Higher mortgage rates make a home more expensive, so how could they possibly help you get a better deal from the seller? Can mortgage rate volatility really give buyers more negotiating power?

"Indirectly, yes," says Craig Garcia, president at Capital Partners Mortgage. "Typically, rate volatility, all other things being equal, can be discouraging for some buyers."

Garcia says some buyers are holding off because they hope rates will come back down, leading to opportunities for negotiations with sellers, many of whom are likely seeing less interest from homebuyers. Case in point? Mortgage applications fell 6.4% for the week ending July 24 when rates hit their highest level since August 2025, according to data from the Mortgage Bankers Association.

"When rates spike like they have in the summer, buyers pause their home searches which brings less competition," says Jeremy Schachter, branch manager at Fairway Independent Mortgage Corporation. "With less competition, buyers have an advantage in negotiations with sellers even more."

When a seller has fewer buyers and offers to choose from, they may be more inclined to accept an offer they might've refused just a few months ago.

"When rates move higher, there are buyers that head to the sidelines, forcing sellers to reduce prices or offer concessions to the purchase in order to get the home sold," says Melissa Cohn, regional vice president at William Raveis Mortgage. "I see more buyers asking and getting concessions, especially if there are any repairs neede