|
|
Buffalo Mortgage Market Brief · Week of May 26, 2026
|
Your buyer isn’t scared of the price.
They’re scared of the payment.
What’s coming up in the market right now — and when it helps to have your loan officer in the conversation early.
|
|
|
|
Current Rates
|
|
|
|
National averages sourced from MBS Live. Actual rates vary based on borrower profile, loan structure, and market timing.
|
|
|
What actually happened last week
Mortgage rates experienced heavy volatility last week as bond markets reacted to ongoing geopolitical headlines and large moves inside the Treasury market.
By Tuesday, mortgage rates briefly reached their highest levels in more than 9 months after aggressive Treasury selling pushed bond yields sharply higher. Since mortgage rates move closely with the bond market, rate pricing worsened quickly across the board.
Midweek, markets stabilized as easing tensions and improving peace prospects helped lower oil prices and reduce inflation concerns. That gave bonds room to recover and allowed mortgage rates to improve back toward prior week levels by Friday.
Looking ahead, markets will continue watching geopolitical developments closely — especially surrounding the Iran peace process following the Memorial Day holiday.
|
|
The one thing your buyers need to hear
The Fed is a bystander right now. Rates are being driven by global conflict, inflation expectations, and Treasury market volatility — not by anything Powell says. For buyers waiting on a Fed rate cut, that distinction matters. It’s a conversation worth having early.
|
|
|
|
What’s coming up in the market right now
It’s a dynamic showing up across the market at current rate levels.
Buyers who are fully qualified and pre-approved are getting to the payment conversation — and the monthly number feels higher than they expected. Not because they can’t afford it. Because the payment reality at today’s rates hits differently than the purchase price did.
That moment — when a buyer goes quiet after seeing the number — is where deals can start to lose momentum.
A price reduction is often the first move that comes to mind. It can absolutely make sense depending on the deal. But on many WNY loan sizes, the monthly payment impact from a price reduction can be smaller than expected — and it doesn’t always address what the buyer is actually reacting to.
There’s another option worth a quick conversation with your loan officer before renegotiating: seller-paid discount points.
|
|
One discount point equals 1% of the loan amount paid upfront at closing by the seller. That money permanently buys down the buyer’s interest rate for the life of the loan — not temporarily, not for a set number of years, but for as long as they hold the mortgage.
Depending on the borrower’s profile, loan type, and lender — one point may reduce the rate by roughly 0.25%. Exact savings vary.
|
|
In some scenarios, a $2,000 seller-paid point structure can reduce the monthly payment more effectively than a $2,000 price cut.
|
|
|
Note: seller-paid points fall under seller concession limits, which vary by loan type and down payment. Conventional, FHA, and VA all have different caps — always worth confirming before those terms go into a contract.
That’s exactly the kind of call worth making before going back to the table.
|
|
|
One way to frame the conversation
When a buyer hesitates after seeing the payment, here’s one way to keep things moving:
|
|
Script — copy and send
|
|
“Before we go straight to a price reduction, let me make a quick call to my loan officer. There may be a way to structure this on the financing side that has a bigger impact on the monthly payment than a price cut of the same amount would. It’s not the right fit for every deal — but it’s worth a 10-minute conversation before deciding which direction to go.”
Then call. That’s exactly where the financing side can help
|
|
|
|
The conversation that protects your deal
Payment shock is an emotion before it’s a math problem.
Buyers who step back aren’t always walking away because the numbers don’t work. Sometimes the payment arrived as a surprise — and surprise creates doubt.
One thing that’s helping in these situations is getting the payment conversation into the process earlier — before the moment of hesitation, not after. When buyers have a clear sense of what they’re comfortable with upfront, there’s more room to work with on the financing side if something needs to shift.
That’s where having a loan officer in the conversation early makes a real difference.
|
|
The earlier the financing conversation happens, the more options everyone has.
|
|
|
|
|
Agent Spotlight · Western New York
Kerri Whetstone — HUNT Real Estate
|
|
Kerri proudly serves Buffalo, the Northtowns, and surrounding Western New York communities — working with buyers and sellers at every stage. Known for her honest, responsive approach, she believes communication and trust are the foundation of every transaction. As both a real estate professional and busy mom, she understands how important it is to find a home that truly fits each client’s life.
|
|
|
|
|
This content is educational and does not constitute mortgage advice or a loan commitment. Rates sourced from MBS Live. Actual rates vary based on borrower profile, loan structure, and market timing.
Troy Pulli · NMLS #2739716 · [email protected] · 716-796-7498
|
