{
  "id": 9633898,
  "title": "America Has a Buyers’ Market They Can’t Afford",
  "url": "https://urgent.news/2026/09/24/america-has-a-buyers-market-they-cant-afford",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-24T21:10:23.000Z",
  "source": {
    "name": "Newsweek",
    "slug": "newsweek",
    "url": "https://www.newsweek.com/mortgage-rates-buyers-market-housing-affordability-12485457"
  },
  "original_language": "en",
  "account": "America finds itself in a peculiar housing market where buyers hold significant bargaining power, but affordability remains a major issue. Mortgage rates have surged above the 7 percent mark, exacerbating the affordability crisis that has tipped the housing market towards buyers favor. However, a \"buyers' market\" refers to the balance of power between buyers and sellers, not their financial capacity to purchase homes. With fewer competitors for homes, qualified buyers now have more leverage to negotiate lower prices, demand repairs, and potentially walk away from deals. This leverage stems from the fact that many potential buyers can no longer secure mortgages due to the high interest rates, which have limited the amount households can borrow without experiencing a significant decrease in home prices. Consequently, demand has softened, but affordability has not improved proportionally. As a result, the market is characterized by a scarcity of buyers amidst high home prices, giving remaining buyers increased negotiating power. Redfin's data reveals that sellers outnumber buyers by nearly 58 percent in August, the largest gap in their records since 2013. Sellers have capitalized on this scarcity by making price reductions and concessions. However, these advantages are contingent upon successfully clearing the larger hurdle of financing the purchase. Even though buyers may negotiate lower closing costs or accept offers below asking price, a mortgage rate near 7 percent can still substantially increase the overall cost of owning the home over time. This is what makes the current market situation unique – buyers have gained transactional power without experiencing equivalent purchasing power. This discrepancy highlights why describing the market as a buyers' market can be misleading, as it does not reflect the number of households capable of entering the market. Higher mortgage rates can decrease the pool of eligible buyers, making sellers more inclined to negotiate. Simultaneously, the same rates raise monthly payments, preventing additional households from qualifying for a loan. Consequently, the market may become increasingly favorable to buyers while simultaneously making it more challenging for individuals to become buyers. Despite this paradox, sellers have thus far managed to prevent a nationwide price decline. Many homeowners possess substantial equity or have secured mortgages at lower interest rates, giving them little incentive to sell at reduced prices unless relocation is necessary. This situation resembles more of a standoff than a traditional housing correction: buyers resist high prices due to expensive financing, while sellers resist deep price cuts due to their ability to wait it out. Thursday's rise in mortgage rates further tightens this tension. If interest rates remain elevated, demand might weaken even more, empowering remaining buyers with greater negotiating leverage and potentially leading to larger price reductions. Conversely, if rates decline, affordability would improve, allowing more buyers to re-enter the market. However, their return would also intensify competition, potentially diminishing the negotiating power currently enjoyed by buyers. This paradox lies at the heart of the current housing market. America now features more favorable conditions for purchasing a home – in part due to the reduced number of Americans who can actually afford to buy one.",
  "summary": "Mortgage rates above 7% are giving active buyers more leverage even as they price millions of would-be buyers out of the market.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}