Mortgage rates are near their highest point in three years, and that's keeping a lot of buyers on the sidelines. But here's what the headlines leave out: fewer buyers means more room to negotiate. In today's Denver market, sellers are often willing to help pay for your rate or your closing costs. That help can save you more than a lower price would.
Where Rates Stand
The average 30-year fixed rate was 7.24% this week, according to Freddie Mac. That's down slightly for a second straight week, but still well above the 6.17% of a year ago. On October 28, the Federal Reserve left rates unchanged after raising them in September, so no one should count on a big drop in the near term.
Why Buyers Have the Upper Hand
Higher rates have thinned out the competition, and the numbers show it:
About 64% of September home sales in the Denver metro included seller concessions, and roughly 80% included a price cut, concessions, or both (Colorado Association of REALTORS).
Inventory has grown to almost five months of supply in the Denver metro, giving buyers more choices and more time (DMAR).
Homes that sit tend to negotiate. Listings that needed a price cut spent a median of 68 days on the market, and sellers in that spot are often open to creative offers.
What You Can Ask For
A temporary rate buydown. With a 2-1 buydown, your rate is two points lower in year one and one point lower in year two before settling at your original rate. It's a cushion while you wait to see if rates fall enough to refinance.
A permanent rate buydown. The seller pays for "points" that lower your rate for the life of the loan.
Closing cost credits. Lender fees, title, prepaid taxes and insurance can add up quickly. A seller credit means less cash out of pocket at closing.
Repairs or a credit for them. Inspection findings are another place to negotiate, either as repairs before closing or a credit instead.
Why a Credit Can Beat a Price Cut
Here's a simple example on a $650,000 home with 20% down at 7.24%, where the monthly principal and interest is about $3,544. Say the seller is willing to give up $15,000:
As a $15,000 price cut: your payment drops about $82 a month.
As a 2-1 buydown: your payment drops about $676 a month in year one and $345 a month in year two. The buydown costs about $12,250, which leaves roughly $2,750 for closing costs.
As a permanent buydown: depending on your lender's pricing, it could lower your rate by around three-quarters of a point, or about $250 a month for the life of the loan.
For most sellers, the cost is the same either way. For you, the difference can be significant.
A Few Things to Know
Concessions have limits. Loan programs cap how much a seller can contribute, typically between 3% and 9% of the price for conventional loans depending on your down payment, 6% for FHA, and 4% for VA.
Run the numbers with your lender. Buydown pricing varies by lender and changes with the market, so get a written quote before you write the offer.
Structure matters. How you ask for a credit, and when, can be as important as how much. That's where having someone in your corner pays off.
Ready to Make the Most of This Market?
If you've been waiting for rates to come down, this may be the moment to negotiate instead. Tell me what you're looking for and I'll send homes that fit, including ones where sellers are already offering credits. Or reach out anytime at kat@hauseofkat.com or 303-517-3631.
Sources: Freddie Mac Primary Mortgage Market Survey (October 29, 2026), Colorado Association of REALTORS (September 2026), DMAR Market Trends Report (September 2026). Payment examples are estimates for illustration only and exclude taxes, insurance and HOA dues. Talk with a licensed lender about your situation. Kat Schneider, Associate Broker, Realty ONE Group Premier.
