For most of last year, market conditions were gradually improving. That shifted this month.

Ongoing geopolitical tensions in the Middle East have pushed oil prices higher, which has influenced inflation expectations. When inflation expectations rise, bond markets tend to weaken, which can lead to higher mortgage pricing.

Earlier in the year, expectations leaned toward improving conditions as the year progressed. More recently, those expectations have become less certain as markets react to evolving economic and global developments

For buyers in Buffalo, this is a reminder that market conditions can change quickly, and timing decisions often depend on a range of factors beyond just waiting for improvement. As conditions shift, it becomes increasingly important to evaluate decisions based on current circumstances rather than expectations alone.

In a market where affordability and inventory conditions vary, seller concessions are one structure sometimes used within a transaction.

A seller concession allows the seller to contribute a portion of their proceeds toward certain buyer-related closing costs. This can reduce the amount of cash the buyer is required to bring to closing, depending on how the transaction is structured.

In some cases, concessions may also be applied toward temporary financing structures, such as a 2-1 buydown, where the interest rate is adjusted during the initial years of the loan before returning to the note rate. The availability and structure of these options depend on loan guidelines, transaction details, and lender approval.

In the Buffalo market, these types of structures may be considered in certain situations, particularly where sellers have flexibility or where properties have been on the market for a longer period of time. How a transaction is structured can vary based on the specific circumstances of both the buyer and seller.

One question that can help open the conversation:

“Have you discussed with your lender how seller concessions can be structured within a transaction?”

This can help introduce the concept early and encourage further discussion with a lending professional, who can provide details based on the specific scenario.

The chart below tracks the 10-Year Treasury yield, a key indicator commonly monitored in mortgage markets. Changes in Treasury yields are often reflected in mortgage pricing, particularly over shorter timeframes.

Each week the Buffalo Mortgage Market Brief highlights a real estate professional active in the Western New York housing market as part of a broader look at the local real estate landscape.

Jennifer is a real estate professional with HUNT Real Estate based in Lockport, serving the greater Niagara County area. With nearly two decades of experience, her background includes working with both buyers and sellers across different stages of the home buying and selling process.

📍 Areas served: Wheatfield, Lockport, and Niagara County

Troy Pulli

This newsletter is for informational purposes only and does not constitute financial or lending advice.