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77 August 2025 J O U R N A L themortgagepoint.com August 2025 » terrent. A recent Realtor.com survey of potential sellers found that half of those with a mortgage feel "locked in" by their current rate, particularly those who have delayed selling for more than a year. One-third of survey respondents said they have delayed purchasing a home due to high mortgage rates—a fig- ure consistent with findings from Sep- tember. Among younger generations, the impact is even more pronounced: more than half of Gen Z and millenni- als reported postponing their plans to buy. Gen Z also showed an increased likelihood of signing leases and delaying home purchases compared to last fall. While 41% of baby boomers said mortgage rates don't impact their pur- chase decisions, younger generations remain highly sensitive to fluctuations. In fact, over two-thirds of respondents overall acknowledged that mortgage rates influence their homebuying decisions. The survey also highlighted how homebuyers are financing purchases: 57% across all generations used personal savings, 15% tapped retirement accounts or investments, and 12% received gifts or loans from family members. Among prospective buyers, one in four intend to use retirement or investment funds for financing. "Mortgage rates on top of an insuf- ficient supply of budget-friendly homes complicate the affordability picture, especially for first-time homebuyers," said Hannah Jones, Senior Research Analyst at Realtor.com. "However, we expect that this lock-in effect will ease as more homeowners grow tired of waiting for significant rate changes and as life factors such as jobs, kids, and retirements drive more to make a home purchase." REPORT: HOUSEHOLD FINANCIAL EXPECTATIONS IMPROVING T he Federal Reserve Bank of New York's Center for Microeconomic Data has released its June 2025 Survey of Consumer Expectations, which shows that households' inflation expec- tations ticked down at the short-term horizon, and remained unchanged at the medium- and longer-term horizons. Households were more optimistic about their year-ahead financial situations and credit access. Unemployment and job loss expectations improved. Spending growth expectations slightly declined, while SHORT SALES OFFERING RARE DISCOUNTS I n 2025's competitive and costly housing market, short sales offer patient buyers a chance to purchase homes at a significant discount. While the process can be slow and complicated, experts say the savings are among the best still available this year. A short sale happens when a home is valued less than what the current owner still owes on the mortgage. In these cases, the lender allows a home sale for less than the outstanding loan balance, most often due to financial issues they may be having. While some may confuse this with foreclosures, there is a difference. Short sales are voluntary and give lenders a possibility of preventing greater losses and debilitating legal fees. According to a 2024 report from Zillow, short sales during this past year sold well below listing price (10–12% on aver- age), while foreclosures sold for 5%-7% below and traditional home sales only offered 3%-5% off. With inventory down 10% year over year, according to Redfin, this means that the opportunity for meaningful discounts is increasingly rare. However, the one possible silver lining seems to be that short sales continue to stand out. Even then, the process takes time and requires patience. Multiple parties (banks, mortgage servicers, private investors, and even government programs like the FHA, to name a few) must approve the deal before it goes through. Each of these entities has its own criteria and time schedules for approval. As one would fear, delays are frequent, particularly if the mortgage has been sold or insured. In these cases, while homes are typically listed close to mar- ket value, buyers can often negotiate significantly lower prices. Experts recommend starting offers at just under the asking price (8%-15%), taking into consideration the home's condition and current local market dynamics. While lenders do not want pro- longed negotiations, you should not be surprised if they counter your offer at least once or twice before making a final decision. If an offer is rejected, buyers can try again. You can even take a few weeks and then resubmit a similar or revised offer, which is an especially good strategy if the home has not sold or if the lender's priorities have shifted. Buyers interested in short sales must stay alert. It is important to track listings closely, so that you can be ready to jump into action when you see a short-sale property pop up. Once you have made your initial move and the process has officially begun, that is where the patience comes into play, as you will most likely experience a long waiting game, marked by constant requests for more and more paperwork, and even frustrating or confusing lags/lapses in communication as lenders review all offers on the table. Even with all of these challenges listed, short sales can save a ton (tens of thousands of dollars, in fact), making them one of the last feasible ways to buy a home below market value in 2025.