During the peak of the pandemic, Atlanta's housing market was red hot, with bidding wars pushing prices higher and homes vanishing from listings in days. Today, that frenzy has cooled. Rising mortgage rates and an influx of new inventory are giving buyers more leverage—not just in Atlanta, but across much of the country.

According to a recent Zillow report, the U.S. housing market is more balanced than it has been in five years. In 28 of the nation's 50 largest metro areas, conditions now favor buyers or are at least neutral. This shift is especially visible in once-booming southern cities such as Austin, Texas, and Tampa, Florida.

One major driver is inventory. In June, there were 1.36 million homes listed for sale—the highest number since November 2019. Still, supply remains about 21 percent below pre-pandemic averages. Despite more listings, affordability remains the largest hurdle. The average 30-year mortgage rate sits at 6.74 percent, while the median price of existing homes hit a record $435,300 in June.

Builders, who ramped up construction during the pandemic housing rush, are now turning to discounts and incentives to lure buyers. D.R. Horton, the nation's largest homebuilder, noted in its latest earnings report that perks like mortgage buydowns and free upgrades are becoming more common, and it expects to offer even more in the months ahead.The increased flexibility is showing up in listing prices: more than one in four homes had a price reduction in June, the highest share for that month since Zillow began tracking the data in 2018.

Agents in the Atlanta metro area say buyers are cautious and deliberate. "I'm definitely seeing a lot of buyers coming out of the woodwork again wanting to see homes," said Tim Hur of Point Honors and Associates, Realtors. "They kind of have an expectation of what they want." That's exactly what Mia Jung and Haley Byun have found. The couple, who began their search a year ago in an Atlanta suburb, say higher interest rates have forced them to lower their budget, but the upside is less competition and more negotiating room. Half of the homes they've toured have had price drops, and they're willing to wait for the right deal.

"It surprised me a little knowing that we have this flexibility and seeing the house prices just continuously go down," Jung said. "So we have the comfort of knowing we can hold out somewhat."

Economists say both buyers and sellers are adjusting to a new normal, where the ultra-low 3 percent mortgage rates of 2020 and 2021 are unlikely to return. While the Federal Reserve has held rates steady in recent months and signaled possible cuts later this year, mortgage rates are still expected to hover around 6 percent into 2026, according to Fannie Mae.

"A price correction is necessary in order to keep housing sales moving in a positive direction," said Orphe Divounguy, a senior economist at Zillow.

Recent data supports that shift: The S&P CoreLogic Case-Shiller Index showed the smallest annual price gain in nearly two years in May, while Redfin reported that prices fell in more than a quarter of the 50 largest metro areas this past week, particularly in Texas and Florida.

For homeowners looking to sell, expectations are shifting. Listing a home as-is is no longer enough. Renovations, upgrades, and polished presentation have become critical. As Hur explained, "Unfortunately, the days of slapping it on the MLS are just gone."

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For the fifth consecutive meeting, the Federal Reserve has decided to leave its benchmark interest rate unchanged. This continued pause follows three rate cuts in late 2024 — half a percentage point in September and a quarter-point each in November and December. The decision has sparked debate, especially with President Trump, who has been vocal about his preference for further rate reductions.

The impact on the housing market remains uncertain. Mortgage rates tumbled ahead of last year's first Fed cut, falling from 8.01 percent in October 2023 to 6.20 percent by September 2024, according to Bankrate. Yet despite the Fed's year-end cuts, mortgage rates climbed again in January 2025, hitting 7 percent. This divergence highlights that the Fed does not directly control mortgage rates. Instead, mortgage markets react to broader economic conditions. "A Fed on hold aligns with our forecast for little change in mortgage rates for the time being," noted Mike Fratantoni, chief economist at the Mortgage Bankers Association.

When inflation peaked in 2022, the central bank aggressively raised rates, sometimes by as much as three-quarters of a point. Those hikes cooled housing activity, slowing sales even as home prices pushed to record highs. Higher borrowing costs have made it more difficult for buyers, while sellers face softer demand. Still, many economists believe mortgage rates could slip even without another Fed cut. Lisa Sturtevant, chief economist at Bright MLS, explains: "A decline in mortgage rates later this summer could give a jolt to the housing market, bringing buyers off the sidelines to take advantage of the dip in rates and expanded inventory."

While Fed policy sets the tone, mortgage rates more closely track the yield on 10-year Treasury notes. This is why rates sometimes move opposite to the Fed's actions. Greg McBride, chief financial analyst at Bankrate, pointed out: "Despite interest rate cuts amounting to a full percentage point by the Federal Reserve in the latter part of 2024, mortgage rates bounded higher. If mortgage rates are going to come down in any meaningful way, inflation needs to resume the downward march to 2 percent."

As of July 30, 2025, the average 30-year mortgage rate stood at 6.75 percent — well below the 8 percent peak in 2023, but still high compared to the historically low levels of 2020–21. Mortgage rates above 6 percent have cooled demand, but prices continue to climb. The National Association of Realtors reported that the nationwide median price for existing homes in June 2025 hit $435,300 — the highest on record. Long-term history suggests rising rates don't stop buyers altogether. Even in the 1980s, when mortgage rates soared to nearly 18 percent, people continued to purchase homes. Today's slowdown appears more like a market correction than a looming crash.

Still, affordability is stretched thin. A $320,000 loan at today's 6.75 percent rate means a monthly payment of $2,076. If rates fall to 6 percent, the same loan would cost $1,919 a month — saving borrowers about $1,800 annually.

Experts say inflation remains the key factor to watch. If inflation keeps easing, mortgage rates are likely to follow. In the meantime, borrowers can take steps to better position themselves:

• Shop around aggressively: Different lenders may offer noticeably different rates and fees.
• Be cautious with ARMs: Adjustable-rate mortgages may look cheaper at first, but the long-term risk of higher payments is significant.
• Tap home equity wisely: For homeowners with low-rate mortgages, a HELOC or home equity loan may make more sense than refinancing into today's higher rates.

The Fed's pause offers stability but not certainty. While mortgage rates may gradually decline if inflation continues its downward path, affordability remains the biggest challenge. For buyers, careful timing and smart loan strategies could make the difference between waiting on the sidelines and stepping into the market.

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Adjustable-Rate Mortgages Make a Comeback

With fixed mortgage rates stuck around the 7 percent mark and home prices hitting new highs, many buyers are turning to adjustable-rate mortgages (ARMs) as a way to make ownership more affordable. These loans, which offer lower initial interest rates than traditional fixed-rate mortgages, are gaining traction among borrowers who want to ease the upfront cost of buying a home.

Why ARMs Are Back in Demand

ARMs start with a fixed interest rate for an introductory period — often three, five, seven, or ten years — before adjusting periodically based on market conditions. That initial lower rate translates into smaller monthly payments, giving buyers more purchasing power.

"Potential homebuyers are finding ways to reduce their monthly payments and view ARMs as more attractive given the widening spread between rates for ARM and fixed-rate loans," explains Joel Kan, deputy chief economist at the Mortgage Bankers Association (MBA).

At the beginning of 2025, ARMs accounted for just 4.7 percent of all mortgage applications. By midyear, that share had jumped to nearly 8 percent.

The Gamble with ARMs

Taking on an ARM is essentially making a bet about the future of mortgage rates. If rates are lower when your fixed period ends, your payments could fall. If they're higher, your monthly bill could increase significantly.

That uncertainty makes ARMs riskier than fixed-rate mortgages. "Mortgage rates are the magic bullet, and we're waiting and waiting until those come down," said Lawrence Yun, chief economist at the National Association of Realtors. Predicting when — or if — that happens is nearly impossible.

Who Benefits Most from ARMs?

An adjustable-rate mortgage can be a smart choice in certain situations:

Short-term homeowners: If you expect to sell within five to ten years, an ARM lets you enjoy lower payments during your time in the house.

Risk-tolerant borrowers: Some buyers are comfortable trading stability for the chance to save money upfront.

Jumbo loan borrowers: ARMs can make high-priced homes more manageable by reducing early payments.

Extra principal payers: If you can make additional payments during the introductory period, you'll reduce your balance faster and minimize exposure to future rate hikes.

The Risks to Watch

Despite their appeal, ARMs aren't for everyone. They typically require at least a 5 percent down payment, compared to 3 percent for some fixed-rate loans. More importantly, lenders now underwrite ARMs based on the highest possible payment you could face, to make sure you can handle future increases.

That's because life doesn't always go according to plan. A job loss, a stalled home sale, or an economic downturn could leave you stuck with higher payments than you expected. For borrowers who value certainty, fixed-rate mortgages remain the safer bet.

Types of ARMs

If you're considering an adjustable-rate loan, here are the most common options:

• 3/1 or 3/6 ARM – Fixed rate for three years, then adjusts annually or semi-annually. Usually comes with the lowest initial rate.
• 5/1 or 5/6 ARM – Fixed rate for five years, then resets annually or semi-annually. The most common ARM structure.
• 7/1 or 7/6 ARM – Seven years of stability before regular adjustments. Balances lower risk with a still-competitive initial rate.
• 10/1 or 10/6 ARM – A full decade of predictable payments before adjustments begin. Introductory rate is slightly higher but still lower than most fixed-rate mortgages.

All ARMs come with rate caps, which limit how much your interest rate (and payment) can increase annually and over the life of the loan.

Adjustable-rate mortgages can be a useful tool in today's housing market, especially for buyers who don't plan to stay in their homes long-term or who want lower payments in the near future. But they come with real risks, and success depends on financial flexibility — and a tolerance for uncertainty.

If you can't stomach the possibility of higher payments down the line, a fixed-rate loan may still be the better path. But for the right borrower, an ARM can open the door to a home that might otherwise be out of reach.

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For decades, designers called the ceiling the "fifth wall" and used it to add drama and style. Today, more attention is shifting downward, as homeowners and designers embrace the floor as the "sixth wall"—a place where craftsmanship, color, and character can shine. And at the top of that design conversation is wood flooring.

Wood floors are once again in high demand. Their natural warmth, timeless beauty, and growing variety of styles have made them a go-to choice in both new construction and remodeling. Homeowners can select from a wide range of wood species, plank sizes, finishes, and construction types to suit just about any space or style. Solid and engineered wood options provide different benefits depending on a home's needs, but both include real wood and high-end appeal.

This surge in popularity is not just about looks—it is also about value. According to the 2022 Remodeling Impact Report by the National Association of REALTORS and the National Association of the Remodeling Industry, homeowners can expect a return of 147 percent on their investment in wood flooring. That ROI makes it one of the best remodeling decisions for resale value.

However, the luxury comes with a cost. Wood sits at the higher end of the pricing spectrum, partly because it is perceived as a high-end material that retains value rather than fluctuating like a commodity. Solid wood is typically more expensive than engineered options because it offers more thickness and can be refinished multiple times. Still, some engineered wood products—depending on wear layer, length, width, and species—can be just as expensive as solid wood.

Board dimensions also play a role in today's trends. Wider, longer planks—often seven inches or more in width and up to sixteen feet in length—are in vogue for their seamless and modern aesthetic. They create a cleaner, less choppy look that feels luxurious. In historic homes, however, designers often match existing board sizes to maintain authenticity.

Color preferences in wood flooring are shifting along with overall interior design trends. Lighter tones, such as natural or white oak with tan or straw stains, are in demand. Red oak is gaining popularity, while medium browns remain a timeless favorite. Darker woods still find their place as a striking contrast to white walls, though they require more upkeep due to visible dust and debris. Painted or stained floors are also emerging as a cost-effective way to personalize spaces, especially when blending old and new flooring.

The species of wood selected often depends on location and lifestyle. Southern homeowners tend to lean toward harder, less grainy woods like maple and walnut. In the Northeast, white oak and red oak remain top choices due to their availability and versatility.

Finish choices are evolving too. The high-gloss look of years past has given way to a matte or satin sheen, which better hides dust, scratches, and daily wear. Reclaimed wood with natural patina is also making a comeback in vintage-style homes, though it can come at a premium due to its rarity and imperfections. More adventurous homeowners are embracing intricate patterns like chevron or herringbone, though these styles increase installation time and cost.

Maintenance is surprisingly straightforward. Most wood floors just need a light mop with mild soap and water. Applying a new coat of finish every few years helps maintain durability, and full sanding is typically only needed every ten to fifteen years. Like any flooring, wood can be damaged by standing water or pet stains, so some caution is necessary.

Despite the price tag and the care involved, wood flooring continues to be one of the most desired upgrades in today's homes. As designer Patricia Gaylor puts it, nothing beats the feel and richness of real wood. For those on a tighter budget, engineered options provide a stylish and cost-effective alternative that still elevates a space. In the end, wood flooring remains a classic choice that blends beauty, durability, and long-term value—setting the tone for the rest of the home.

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Even small movements in mortgage rates are creating ripples across the housing market this summer. During the week ending July 4, homebuyers jumped at the chance to lock in lower rates, driving a 9 percent surge in mortgage applications for home purchases compared to the previous week. According to the Mortgage Bankers Association (MBA), this spike also marked a 25 percent increase from the same week in 2023—a clear signal that buyers are paying close attention to rate trends.

Mortgage applications are often a preview of upcoming homebuying activity, and these numbers show just how sensitive today's market is to even slight changes in borrowing costs. Joel Kan, MBA's deputy chief economist, credits this renewed buyer demand to a mix of growing housing inventory and a slowing pace of home price growth. Meanwhile, current homeowners took advantage of the brief dip in rates to refinance, with refinance applications jumping 56 percent year-over-year.

However, the window for lower rates did not stay open for long. As of the week ending July 10, rates began climbing again following a stronger-than-expected jobs report. Freddie Mac's latest data shows the average rate for a 30-year fixed mortgage has ticked up to 6.72 percent from 6.67 percent the previous week. That is still lower than the 6.89 percent average from a year ago, but the upward movement signals volatility ahead.

Freddie Mac's chief economist Sam Khater noted that despite affordability challenges, homebuyers and those looking to refinance are reacting quickly when rates decline. This week's mortgage rate increases came after five straight weeks of drops, showing just how quickly market dynamics can shift.

One notable trend is the decreasing size of the average mortgage loan. The MBA reports that the average loan amount for a home purchase has dropped to $432,600, the lowest level since January. This suggests buyers are either opting for more modest homes or that pricing pressures may be softening in some markets.

Here's how national mortgage rates stack up this week, according to Freddie Mac:

30-year fixed-rate mortgages averaged 6.72 percent, up from last week's 6.67 percent. One year ago, the rate was 6.89 percent.

15-year fixed-rate mortgages averaged 5.86 percent, up from 5.80 percent last week. At the same time last year, the average was 6.17 percent.

While rates remain high by historical standards, even slight improvements are enough to draw buyers and homeowners off the sidelines. As we move deeper into the summer market, the key question is whether rates will stabilize, rise again, or dip just enough to keep this momentum going. For now, one thing is clear—buyers are watching the market closely and are ready to act when the numbers make sense.

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Even small movements in mortgage rates are creating ripples across the housing market this summer. During the week ending July 4, homebuyers jumped at the chance to lock in lower rates, driving a 9 percent surge in mortgage applications for home purchases compared to the previous week. According to the Mortgage Bankers Association (MBA), this spike also marked a 25 percent increase from the same week in 2023—a clear signal that buyers are paying close attention to rate trends.

Mortgage applications are often a preview of upcoming homebuying activity, and these numbers show just how sensitive today's market is to even slight changes in borrowing costs. Joel Kan, MBA's deputy chief economist, credits this renewed buyer demand to a mix of growing housing inventory and a slowing pace of home price growth. Meanwhile, current homeowners took advantage of the brief dip in rates to refinance, with refinance applications jumping 56 percent year-over-year.

However, the window for lower rates did not stay open for long. As of the week ending July 10, rates began climbing again following a stronger-than-expected jobs report. Freddie Mac's latest data shows the average rate for a 30-year fixed mortgage has ticked up to 6.72 percent from 6.67 percent the previous week. That is still lower than the 6.89 percent average from a year ago, but the upward movement signals volatility ahead.

Freddie Mac's chief economist Sam Khater noted that despite affordability challenges, homebuyers and those looking to refinance are reacting quickly when rates decline. This week's mortgage rate increases came after five straight weeks of drops, showing just how quickly market dynamics can shift.

One notable trend is the decreasing size of the average mortgage loan. The MBA reports that the average loan amount for a home purchase has dropped to $432,600, the lowest level since January. This suggests buyers are either opting for more modest homes or that pricing pressures may be softening in some markets.

Here's how national mortgage rates stack up this week, according to Freddie Mac:

30-year fixed-rate mortgages averaged 6.72 percent, up from last week's 6.67 percent. One year ago, the rate was 6.89 percent.

15-year fixed-rate mortgages averaged 5.86 percent, up from 5.80 percent last week. At the same time last year, the average was 6.17 percent.

While rates remain high by historical standards, even slight improvements are enough to draw buyers and homeowners off the sidelines. As we move deeper into the summer market, the key question is whether rates will stabilize, rise again, or dip just enough to keep this momentum going. For now, one thing is clear—buyers are watching the market closely and are ready to act when the numbers make sense.

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What Are Lender Credits and Should You Use Them When Buying a Home?

Lender credits are a tool homebuyers can use to lower the upfront cost of purchasing a home, especially when closing costs start to stretch an already tight budget. When you accept a lender credit, your lender agrees to pay part or all of your closing costs. In exchange, you accept a slightly higher interest rate on your mortgage. This trade-off can be helpful in the short term, but it comes with long-term financial implications.

Lender credits can significantly reduce what you owe on closing day, sometimes by thousands of dollars. For example, on a $300,000 mortgage, closing costs typically range from 2 to 5 percent of the loan amount, which means you could be paying $6,000 to $15,000 upfront. With lender credits, that entire chunk can be partially or completely covered. However, these credits can only be applied to closing costs—not to your down payment or other debts.

The number of credits you qualify for depends on the lender and your financial profile. To be eligible for a favorable lender credit and a competitive interest rate, you'll likely need a strong credit score, a down payment of at least 20 percent, and a debt-to-income ratio no higher than 45 percent. Since each lender structures these credits differently, it's important to shop around and compare at least three offers to see who provides the best value.

Lender credits are often misunderstood, especially in comparison to mortgage points. While lender credits reduce your upfront costs by increasing your interest rate, mortgage points do the opposite. With points, you pay extra at closing to lower your interest rate over time. For instance, one point usually costs 1 percent of your loan amount and reduces your rate by about 0.25 percent. Lender credits are sometimes called "negative points" because they work in reverse.

To understand the impact, consider a $330,000 mortgage. Taking a lender credit might save you $500 at closing, but you'll pay around \$10,000 more in interest over the life of the loan. On the other hand, paying two points could cost $6,600 more upfront but save you roughly \$39,000 in interest over 30 years. These numbers highlight the importance of balancing short-term needs with long-term costs.

Negotiating a better lender credit is possible, especially if you have a solid financial profile or competing offers from other lenders. Improve your credit score, lower your debt, and don't be afraid to ask your lender if they can offer more favorable terms.

Lender credits are most beneficial for buyers who plan to sell or refinance within a few years, since they won't be paying the higher interest rate for the full loan term. They can also help buyers meet a lender's reserve requirements by preserving more cash on hand. For those who are strapped for cash at closing or refinancing, these credits offer a practical solution.

However, there are drawbacks. A higher interest rate means a higher monthly payment and significantly more interest paid over time. If you plan to stay in your home for the long haul, the increased cost could outweigh the short-term benefit.

If you're unsure about accepting a lender credit, consider other options. You can ask the seller to cover some of your closing costs, which is more common in a buyer's market. Down payment assistance programs from local and state governments may also provide low-interest or forgivable loans. In some cases, friends or family might be willing to help with closing costs, provided you disclose the arrangement to your lender. Another option is a no-closing-cost mortgage, which rolls the fees into your loan amount. Like lender credits, these loans typically come with a higher interest rate or larger loan balance.

Ultimately, lender credits can be a smart financial strategy in the right circumstances. But before you commit, carefully weigh how long you plan to stay in the home, your monthly budget, and how much total interest you're comfortable paying. The best choice is the one that aligns with both your short-term needs and long-term financial goals.

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