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More Homes, Fewer Buyers

How Louisville Buyers Can Lower Their Payment

November 2, 2026

For the first time in years, the housing market is tilting toward buyers. More homes are for sale, fewer buyers are competing for them, and nearly half of sellers are offering concessions to close the deal.

That shift gives you something you haven't had in a while: leverage. Below, we break down what the latest numbers show, and how a seller-paid rate buydown can turn that leverage into a lower monthly payment.

More homes are for sale

Inventory is climbing nationally, and even faster here at home.

  • Nationally: Active listings were up 5.4% from a year earlier in September, the fastest annual gain in six months, according to Realtor.com.
  • Price cuts are more common: 20.8% of listings had a price reduction, the highest share for any September since 2018 (Realtor.com).
  • More months of supply: There was enough existing-home inventory to last 4.8 months at the current sales pace, up from 4.5 a year ago, per the National Association of REALTORS®.
  • In Louisville: Active single-family listings in Jefferson County reached 2,527 in September, up 31.5% from a year earlier and the highest in two years, according to Louisville MLS data.

More choices mean buyers can take their time, compare homes, and negotiate.

Fewer buyers are competing

At the same time, fewer buyers are signing contracts.

  • Pending sales are down: Contracts on existing homes fell 7.3% from August and 11.3% from a year earlier in September, according to NAR.
  • Fewer homes under contract: The number of homes under contract was down 4.1% from a year ago, the steepest drop since March 2025 (Realtor.com).
  • Fewer purchase applications: Mortgage applications to buy a home were 18% below the same week last year, per the Mortgage Bankers Association.
  • Louisville is following suit: Pending sales in Jefferson County were down 24.7% from a year earlier in September (Louisville MLS).

Fewer bidding wars and less competition mean sellers are more willing to work with you.

Sellers are offering concessions

Nearly half of sellers are now paying something toward the buyer's costs. In August, 44.7% of U.S. home sales included a seller concession, up from 42.6% a year earlier, according to Redfin data reported by MortgagePoint. Redfin called it the strongest buyer's market in its records going back to 2013.

A seller concession is money the seller agrees to pay toward your costs at closing. Sellers commonly cover closing costs or repairs, and more of them are paying to buy down the buyer's mortgage rate.

Why a rate buydown can beat a price cut

When a seller is ready to give a little, most buyers ask for a lower price. In many cases, asking the seller to put that money toward your interest rate does more for your monthly budget.

A rate buydown is money paid upfront to lower your mortgage interest rate. There are two common types:

  • Permanent buydown: The money pays discount points that lower your rate for the life of the loan.
  • Temporary buydown: The money lowers your rate for the first year or two, then it steps up to your full rate. A "2-1" buydown, for example, lowers the rate for the first two years. This can give you breathing room while you settle into your new home.

Why it can be the better deal: a price cut lowers your payment only slightly, because it is spread across a 30-year loan. The same dollars spent on a buydown can bring your payment down more, especially in the early years. Which option saves you the most depends on the home price, your loan type and how long you plan to stay.

Good to know: Loan programs limit how much a seller can contribute. FHA loans allow seller concessions of up to 6% of the sales price. Conventional and VA loans have their own limits. Your loan officer can show you what your loan allows.

Your next step: talk to your loan officer before you make an offer

The best time to plan a buydown is before you write an offer, so you and your agent know exactly what to ask the seller for. A Statewide Mortgage loan officer can:

  1. Compare a price reduction with a permanent or temporary buydown for the homes you're considering.
  2. Show you how much the seller can contribute under your loan program.
  3. Get you pre-approved, so your offer is strong and your request is clear.

More homes and fewer buyers make this a market where it pays to negotiate. Contact a Statewide Mortgage loan officer today to ask about buydown programs and find the option that fits your budget.

Sources

Statewide Mortgage, LLC. NMLS #1304. Equal Housing Opportunity. This article is for general information only and is not a commitment to lend. Loan programs, seller concession limits and buydown options vary by loan type and are subject to eligibility and underwriting approval.