Higher mortgage rates give homebuyers more bargaining power, Myers Capital Hawaii says
TLT•Myers Capital Hawaii says higher borrowing costs are cooling housing demand and giving buyers more choices and negotiating power. The average 30-year fixed mortgage rate reached 7.28% in early October 2026, while August inventory rose 5.9% year over year to 1.62 million homes.
1. Rates cool demand
Myers Capital Hawaii’s housing market analysis says higher borrowing costs are cooling demand, giving buyers more choices and greater negotiating power. The average U.S. 30-year fixed mortgage rate reached 7.28% in early October 2026, compared with below 6% earlier in the year.
2. August housing figures
Housing inventory rose to 1.62 million homes in August, up 5.9% from a year earlier. Existing-home sales fell to a 3.98 million annual pace, while the national median existing-home price was 1.6% higher year over year.
3. Rate relief conditions
The analysis says sustained mortgage rate relief likely requires lower inflation and cooling economic growth to bring longer-term bond yields down.
