Interest Rates Just Went Up — What Does That Mean for Georgia Home Buyers and Sellers?

Updated September 17, 2026

If you've been thinking about buying or selling a home, yesterday's interest-rate news probably got your attention.

On September 16, the Federal Reserve raised its benchmark federal funds rate by 0.25 percentage points, bringing the target range to 3.75%–4.00%. The Fed said inflation remains elevated and that the increase was intended to help bring inflation back toward its 2% goal.

At the same time, mortgage rates have been moving higher. Freddie Mac reported today that the average 30-year fixed mortgage rate reached 6.95%, up from 6.76% last week and 6.71% two weeks ago.

So what does this actually mean if you're trying to sell a home or buy one in Georgia?

Probably not what some of the headlines would have you believe.

This is important.

When the Federal Reserve raises its rate, mortgage lenders don't simply add 0.25% to mortgage rates the next morning.

Mortgage rates are influenced by the bond market, inflation expectations, the economy, investor demand and expectations about what the Fed will do next.

But higher rates generally mean higher borrowing costs, and that affects housing because the monthly payment is ultimately what determines how much home many buyers can afford.

And that's where today's market gets interesting.

Higher mortgage rates tend to reduce buyers' purchasing power.

Some buyers who could comfortably afford a $500,000 home several months ago may now need to look at $475,000—or negotiate enough seller concessions to make the payment work.

Others may simply decide to wait.

That generally creates three effects:

• Fewer buyers competing for each home.
• Homes taking longer to sell.
• More negotiation between buyers and sellers.

We're already seeing signs of a more balanced market in Georgia.

Georgia REALTORS® reported that in July, pending sales were down 23%, closed sales were down 21%, and homes were averaging 56 days on market. At the same time, inventory increased to 55,469 homes, representing approximately 5.2 months of supply.

But here's the part sellers shouldn't overlook:

Prices haven't collapsed.

Georgia's July median sales price actually increased 2% to $370,000.

That's why I wouldn't describe today's market as simply a “bad market.”

It's a different market.

And strategy matters much more than it did when buyers were lining up around the block.

The biggest mistake a seller can make today is pricing a home based on what their neighbor received during a stronger seller's market.

Buyers have more choices now.

They also have higher monthly payments.

That means overpricing is punished quickly.

A home that is priced correctly, presented properly and marketed aggressively can still sell very well. A home that starts too high can sit for several weeks, accumulate days on market and eventually require price reductions.

And once buyers start asking, “What's wrong with it?”, you've lost some leverage.

The first few weeks on the market matter enormously.

Rather than starting artificially high because “we can always come down,” I would rather study the competing inventory, recent sales, current buyer activity and price the home strategically from day one.

In some situations, a seller concession toward closing costs or an interest-rate buydown can be more effective than simply reducing the asking price.

For example, a buyer may care far more about reducing their monthly payment than saving a few thousand dollars on the purchase price.

That doesn't mean sellers should automatically offer concessions.

It means we should do the maths before deciding.

Sometimes $10,000 used strategically can produce a much better result than a $10,000 price reduction.

When inventory increases, buyers become more selective.

Condition matters.

Photography matters.

Presentation matters.

Marketing matters.

And price matters.

There are homes buyers will stretch for—and homes they will scroll straight past.

The goal is to make yours the first kind.

Buyers have the opposite problem.

Rates aren't particularly attractive—but the negotiating environment may be.

That's an important distinction.

When rates were extremely low, buyers often faced multiple offers, appraisal gaps, waived contingencies and very little negotiating power.

Today's buyer may have considerably more leverage.

That can mean negotiating:

• Purchase price
• Seller-paid closing costs
• Interest-rate buydowns
• Repairs
• Home warranties
• Closing dates
• Other contract terms

So I wouldn't make the decision to buy based solely on whether mortgage rates might be lower six months from now.

Nobody knows with certainty where mortgage rates will be six months from now.

Instead, ask a better question:

Can I comfortably afford the right home today, and can we negotiate a deal that makes financial sense?

If the answer is yes, there may be opportunity.

You'll hear this phrase frequently:

“Marry the house, date the rate.”

I understand the idea, but I'd be careful with it.

Yes, if rates decline later, refinancing may become an option.

But you should never buy a house you cannot comfortably afford today on the assumption that you'll definitely refinance later.

There is no guarantee rates will fall quickly enough—or that your financial situation, the property's value or lending requirements will make refinancing worthwhile when they do.

Buy based on today's numbers.

Treat a future refinance as a potential bonus.

This may actually be one of the most overlooked parts of today's market.

A homeowner might think:

“I don't want to give up my 3% mortgage.”

Completely understandable.

But if your current home no longer works for your family, the interest rate shouldn't be the only consideration.

If you're selling and buying at the same time, you may give up some negotiating power when selling—but gain negotiating power when purchasing.

That's why I look at the entire transaction, rather than treating the sale and purchase as two unrelated events.

Sometimes the money you negotiate on the next house changes the equation considerably.

There are several possibilities.

Rates could stay around current levels.

They could rise further.

Economic conditions could eventually push them lower.

Buyer demand could weaken—or buyers who have been sitting on the sidelines could return quickly if rates improve.

Trying to perfectly time all of that is extraordinarily difficult.

What we know today is this:

Georgia has more inventory and longer marketing times, giving buyers additional negotiating power, while home prices have remained relatively stable rather than experiencing the dramatic decline some people expected.

That creates a market where both sides need a strategy.

It depends on your situation, not the national headline.

For sellers, I would want to know:

• What is your home realistically worth today?
• How much competition do you have?
• How much equity do you have?
• Where are you moving next?
• And what strategy gives you the best net result, rather than simply the highest asking price?

For buyers:

• What monthly payment are you genuinely comfortable with?
• What homes fit that number?
• How motivated is the seller?
• Can we negotiate the price, closing costs or financing structure?
• And does buying today improve your situation enough to make sense?

Those are much better questions than simply asking:

“Are interest rates going up or down?”

Higher rates will probably create some hesitation among buyers, and sellers should expect homes to take longer to sell than they did during the frenzy of the last few years.

But this isn't a market where buyers automatically win or sellers automatically lose.

It's a market where pricing, negotiation and strategy matter again.

And frankly, I prefer that kind of real estate.

If you're considering selling or buying in Dacula, Mulberry, Hamilton Mill, Gwinnett County or anywhere across Georgia, I'm happy to run the actual numbers with you.

No pressure. No generic sales pitch.

Just straight answers, smart strategy, and no mucking around.

Rob Dietrich | eXp Realty

Georgia REALTOR® | License #384162

AI Certified Real Estate Strategist