Five market trends helping buyers score

Better news for buyers

The market has been steadily tilting towards buyers, and that trend keeps on continuing.

Mortgage rates just hit their lowest level since April, and that’s just one of the buyer-friendly shifts happening right now in the market.

Today, we are going to dig into these trends, and explain how you can help your clients pounce on this opportunity!

Well… unless those buyers are home flippers.

As you’ll see in our second story, the fix-and-flip market is struggling for several reasons, hitting one record-low metric in one important category. We’ll dig into the data there too.

With that, let’s get into this edition of The Blueprint!

- James and David

Mortgage rate dip gives buyers an opportunity

Mortgage rates just hit their lowest level since April, giving buyers a rare boost in purchasing power. After a softer-than-expected jobs report, the Freddie Mac 30-year mortgage rate fell 9 basis points to 6.63%, while the daily average 30-year fixed rate tracked by Mortgage News Daily fell to 6.58%. 

This means a buyer with a $3,000 monthly budget can now afford a $458,750 home, about $20,000 more than in May, when rates peaked at 7.08%.

According to Redfin, here are three other emerging buyer-friendly shifts:

• Home-price growth is cooling – Median asking prices are up just 2.3% year over year, one of the smallest gains in two years, and Redfin expects sale prices to dip 1% by year’s end. Only 26.6% of homes are selling above asking, down from 31% a year ago.

• Supply is outpacing demand – Total homes for sale are up 8.5% annually, while pending sales are down 1.2%.

• Sellers are more negotiable – In markets from the Bay Area to coastal Florida, sellers are accepting offers below asking or adding perks like closing cost credits and repair allowances.

Our take

This window of opportunity could close quickly. New listings are flat year over year, as would-be sellers realize they may not get the price they want for their home, and lower rates may lure more buyers back into the market. Mortgage-purchase applications are already up 2% week over week. Buyers who act now can lock in a lower rate, negotiate harder, and take advantage of softer prices before the competition heats back up. For tips on how to capitalize, scroll down to today’s Foundation Plans.

Fix-and-flip market struggles in Q2

The fix-and-flip market is struggling due to rising renovation costs, higher borrowing rates, and labor shortages, which are slowing profitability and sales nationwide. That’s according to the Q2 2025 Fix-and-Flip Market Survey from Kiavi and John Burns Research & Consulting via housingwire.com.  Here are the key takeaways:

• 53% of flippers say deals are harder to turn quickly and profitably, with days-on-market rising as resale and new-home inventory builds.

• Only 30% reported strong sales in Q2, down from 38% a year ago. Those numbers are lower in California, Florida, Texas, and the Southwest, where around 20% reported poor sales.

• The index tracking availability of pre-flip homes fell to 59, the lowest on record, signaling tighter supply despite easing competition in some regions.

• A record-low 15% saw homes sell mostly above after-repair value (ARV) while average renovation costs hit a record $76K.

• Flippers paid an average of 9.5% interest on loans in Q2, squeezing margins further.

Our take

Flipping is no longer the easy money hustle it was during the pandemic boom. In this environment, the winners will be the flippers who buy with discipline, budget with precision, and move fast. Every extra day on market now comes straight out of profit! For agents, this is a cue to stay close to investor clients, share market data early, and help them spot properties with the best profit potential before they hit the wider market. Position yourself as the go-to partner for spotting profit potential.

States with the most seriously underwater mortgages

ATTOM’s Q2 2025 data shows the share of seriously underwater mortgages remains low nationwide at just 2.7% of outstanding loans, up slightly from 2.4% a year ago. A loan is considered “seriously underwater” when the combined mortgage balance is at least 25% more than the property’s estimated market value.

Here are the top 10 states with the highest share of seriously underwater mortgages:

1. Louisiana: 11.9%

2. Kentucky: 7.0%

3. Mississippi: 6.5%

4. Iowa: 5.9%

5. Oklahoma: 5.6%

6. Arkansas: 5.6%

7. North Dakota: 5.0%

8. Kansas: 4.4%

9. Missouri: 4.3%

10. West Virginia: 4.3%

Our take

Despite small shifts, underwater mortgages remain rare, and homeowner equity is holding steady. Equity is one of the few bright spots in today’s housing market, and for owners, it’s a source of genuine security and flexibility. For agents, this is a reminder to highlight equity positions with clients considering a move or refinance. Many homeowners are sitting on significant cash reserves. They simply need a clear strategy to put it to work.

Schematics

The news that just missed the cut

• How to build a vendor network that pays you at least six figures

• More buyers are becoming “rentvesters” – here’s what to know

• Fannie and Freddie may go public by the end of the year

• New ChatGPT updates every agent needs to know

• Inside America's most expensive neighborhood — and it's not Beverly Hills

Foundation Plans

Advice from James and David to win the day

As we mentioned in our first story, mortgage rates have dipped to around 6.5% for a 30-year mortgage — one of the lowest points in months. While that’s still higher than the sub-4% era, it’s a window of opportunity for buyers who’ve been waiting for relief. Agents who act quickly and guide clients with clarity can help them make the most of this shift. Here’s how:

Revisit pre-approved buyers – Contact clients who were pre-approved when rates were higher. A lower rate could increase their buying power or help them afford a better home without raising their monthly payment. This follow-up can revive stalled searches and get clients excited to re-enter the market.

Highlight monthly payment savings – Show side-by-side comparisons of what the same loan amount would cost now versus a few months ago. Tangible numbers make the benefit real, and create urgency to act before rates climb again. When clients see the savings in black and white, it’s much easier for them to make a move.

Frame it as a temporary window – Rates are volatile. Position the current dip as a “strike-while-it’s-hot” moment. Even small increases can erase today’s affordability gains. This helps buyers understand that waiting could cost them far more than they expect.

Educate on refinancing options – For buyers hesitant to lock in a 6.5% rate, explain “marry the house, date the rate.” They can buy now to avoid rising home prices and refinance later if rates drop further. This shifts the focus from short-term interest rates to long-term equity growth.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“It is not necessary to do extraordinary things to get extraordinary results.” – Warren Buffett

Coming from Buffett, that says a lot. Success starts by getting going and builds through consistency. Plan, but don’t wait until everything’s perfect. Start messy. Improve as you go. Progress compounds. Success snowballs.

- James and David