"You should pay attention to how lenders react before the headlines change. When lenders start offering more flexible terms, temporary buy-downs, or incentives, they are responding to expectations, not current conditions. That behaviour often shows up weeks or months before buyers feel relief. On the other hand, when lenders quietly tighten approvals or raise fees without a rate hike, it usually signals caution ahead."
"Another overlooked detail is how rate changes affect competition. Even a small drop can bring sidelined buyers back into the market, especially in mid-priced homes. That increases demand quickly and can erase negotiating power before prices officially rise. Waiting for a perfect rate often means buying into a more crowded market. Instead of asking whether rates are high or low, ask whether they are becoming more predictable. Stability creates planning power. Volatility creates hesitation."
Buying in 2026 requires deliberate reading of economic signals rather than reaction to headlines. Monitor lender behavior because flexible terms, temporary buy-downs, or incentives often precede visible relief, while quiet tightening of approvals or higher fees signals caution. Small rate drops can quickly draw sidelined buyers, raise demand, and erase negotiating leverage. Prioritize rate predictability over absolute level because stability enables planning and volatility breeds hesitation. Track inflation in housing-specific costs—construction, labor, insurance, and energy—because those costs shape new supply and seller expectations. Uneven cooling in these costs produces uneven housing market responses, affecting timing and negotiation power.
Read at London Business News | Londonlovesbusiness.com
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