Buyers rarely get low mortgage rates and strong negotiating power at the same time, and right now Northeast Florida buyers have the leverage. With rates above 7%, fewer people are competing for homes, so sellers are more willing to offer price cuts, closing cost help, and even rate buydowns.
If you’ve been watching rates and feeling stuck, you’re not alone. Here in St. Johns County and St. Augustine, plenty of buyers are waiting on the sidelines for rates to drop. But rates are only half of the picture, and the other half may be working in your favor.
Why Low Rates and Leverage Rarely Show Up Together
Think back to 2020 and 2021, when rates sat near 3%. Buyers rushed in, and there simply weren’t enough homes to go around.
That meant multiple offers, bids over asking price, and buyers waiving inspections. Sellers held all the cards. Jake Krimmel, Senior Economist at Realtor.com, put it this way:
“Seller’s markets peaked at 98 of 100 metros in spring 2022 after two years of mortgage rates near 3%.”
Then rates climbed in the second half of 2022. Fewer people bought, inventory grew, and the balance slowly shifted. Realtor.com now finds that about two-thirds (66) of the top 100 metros lean in favor of buyers.
What Your Leverage Looks Like
With more homes for sale than we’ve seen in years, sellers have to work harder to close a deal. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“Higher inventory and lengthening days on market give buyers improved negotiating power.”
You can see it in the deals getting done. According to Redfin, nearly half of buyers now receive some kind of concession from the seller.
Those concessions often include:
- Help with closing costs
- Money for repairs after the inspection
- A seller-paid mortgage rate buydown
- A reduction in the list price
So when you find a home you love in St. Augustine, Ponte Vedra, or Palencia, and the rate isn’t what you hoped for, you have other levers to pull. A seller-paid buydown or a price cut can take some of the sting out of a higher rate.
Why Waiting for Lower Rates Could Backfire
Experts at Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo don’t expect rates to fall much through 2027.
Even if rates did drop in a big way, many of today’s sidelined buyers would rush back in. More competition means fewer deals, fewer concessions, and sellers regaining the upper hand.
So waiting is a trade-off. You might land a better rate later, but you’d probably give up the bargaining power you have today. That doesn’t mean you have to move right now. You should only buy when the numbers work for you. But if you have a real reason to move, today’s leverage could help make those numbers work, even at today’s rates.
Frequently Asked Questions
Should I wait for mortgage rates to come down before buying a home in Northeast Florida?
Not necessarily. Major forecasters don’t expect rates to fall much through 2027, and if they do drop, more buyers will return and your negotiating power will shrink.
What can I ask a seller for if I’m worried about a high mortgage rate?
You can ask for a price reduction, help with closing costs, repair credits, or a seller-paid rate buydown. Nearly half of buyers are getting some form of concession.
How do I know if a seller will negotiate?
Homes that have been on the market longer, or that have had recent price changes, are often good candidates. A local agent can read those signals and tell you where sellers are most open to a deal.
Bottom Line
Buyers rarely get low rates and strong negotiating power at the same time, and the current market is handing you the leverage. Connect with a local real estate agent to find homes where sellers may be open to covering a rate buydown or closing costs, so you can see whether it can work for your budget.
If you are considering buying or selling in Northeast Florida, contact Danielle Fraser, P.A. | Berkshire Hathaway HomeServices Florida Network Realty.
Call or text 904-907-4559 , email danielle@