Buyers Gained Leverage. A 7.4% Mortgage Cut Purchasing Power.

Homebuyers gained leverage in more U.S. metros, but a jump in mortgage rates cut what a monthly payment can buy. Fox Business reported Realtor.com's third-quarter market clock on October 20, 2026.

The national clock moved to 4 o'clock, one hour toward buyers since the second quarter. Over 12 months, seller's markets fell from 39 to 27 and buyer's markets rose from 13 to 17. Fifty-five metros were balanced. Greenville, South Carolina, and Nashville were the strongest buyer's markets. Hartford, Connecticut, was the only peak seller's market.

The shift did not restore purchasing power. Economist Jake Krimmel said rates rose 74 basis points, from 6.66% in late August to 7.4% on October 8. For a buyer budgeting $2,000 a month in principal and interest, that erased about $22,000 in home purchasing power. The Midwest still held 16 of 27 seller-friendly markets. The South had 14 buyer's markets, and the West added Bakersfield, Riverside, and Colorado Springs.

The clock measures bargaining position, not home prices, and it does not reset a fixed-rate loan.

Could buyer leverage lower the payment on a fixed mortgage you already have? No. The 7.4% comparison is for new loans. An existing fixed payment stays at its contract rate.