The Fed Just Raised Rates—Why Now May Be the Worst Time to Sell but it is CLEARLY an Excellent Time to Buy

On September 16, 2026, the Federal Reserve voted unanimously to raise the federal-funds target rate by one-quarter of a percentage point, bringing it to 3.75%–4.00%. The 12–0 decision sends a clear message: inflation remains a concern, and borrowing costs may remain elevated. Federal Reserve announcement

Although the Federal Reserve does not directly set mortgage rates, its decision influences financial markets and borrowing costs. The psychological effect on homebuyers may be immediate: some will pause, others will reduce their budgets, and many will postpone buying altogether.

That will likely place even more pressure on sellers—especially as we move beyond the spring and summer selling season.

Selling Right Now Can Feel Like Pushing a Boulder Uphill in the Rain

Real estate is extremely cyclical. Buyer activity generally rises during the spring and summer, when families are attempting to move before the beginning of a new school year. Once that peak season passes, demand typically slows.

Now combine that seasonal slowdown with higher borrowing costs, economic uncertainty and extremely aggressive new-construction incentives. The result is an unmistakable buyer’s market across much of Dallas-Fort Worth.

If you list a home today, you may encounter:

• Fewer qualified buyers
• Longer days on the market
• More competition from other sellers
• Greater pressure to reduce your price
• Requests for closing-cost assistance
• Repair demands and other concessions
• Competition from builders offering below-market financing

Trying to sell under those conditions can feel like pushing a very large boulder up a very steep hill—in the rain.

Before accepting a dramatically reduced price, homeowners should ask a more important question:

Should I sell this property at all?

Do Not Surrender an Irreplaceable Mortgage

Millions of American homeowners are holding one of the most valuable financial assets available today: a historically low, pandemic-era mortgage.

As of the first quarter of 2026, approximately half of all outstanding mortgages carried an interest rate of 4% or below, while nearly four out of five were below 6%. Realtor.com mortgage-rate analysis

If you have a mortgage in the 2%, 3% or low-4% range, selling means permanently surrendering financing that may be impossible to replace for years.

That low-interest mortgage is not merely a payment. It may be a long-term wealth-building tool.

Instead of selling at a reduced price, consider keeping the property, leasing it and allowing a tenant to help:

• Pay down your mortgage
• Cover property-related expenses
• Build your equity
• Preserve your low interest rate
• Generate potential monthly cash flow
• Provide potential tax advantages
• Participate in Dallas-Fort Worth’s long-term appreciation
• Create an asset that may eventually benefit your children

That is how ordinary homeowners can begin building generational wealth.

A Slower Sales Market Can Strengthen Rental Demand

When interest rates rise, some prospective buyers can no longer qualify for the home they wanted. Others decide to wait because they are uncertain about prices, payments or the broader economy.

But those people still need somewhere to live.

Many move into the rental market, increasing the pool of prospective tenants. Therefore, the same conditions making it more difficult to sell may make holding and leasing the property more attractive.

This does not mean every house automatically makes a good rental. The numbers must be evaluated carefully—including projected rent, mortgage payment, property taxes, insurance, HOA dues, maintenance and vacancy exposure. However, homeowners should complete that analysis before giving up a valuable mortgage or accepting a deeply discounted sales price.

Why I Remain Bullish on Dallas-Fort Worth

Today’s conditions may be challenging, but I believe the long-term case for owning Dallas-Fort Worth real estate remains extraordinarily strong.

DFW continues to attract people, businesses, investment and high-paying employment. It has become one of America’s most important financial and corporate centers.

Goldman Sachs is developing an 800,000-square-foot Dallas campus designed to accommodate more than 5,000 employees. Dallas is already the company’s second-largest U.S. office. Goldman Sachs

JPMorganChase employs more than 17,000 people across DFW, including approximately 13,000 at its Plano campus, and recently announced another expansion in Frisco. JPMorganChase

Bank of America, Wells Fargo and many other major financial institutions also maintain significant operations across North Texas.

These employers support thousands of jobs, attract additional businesses and bring more households into the region. Those people need homes—and an expanding population creates long-term demand for both owner-occupied and rental housing.

Real estate will always move through cycles. Today’s buyer’s market will not last forever. Selling a strong asset during a temporary downturn can convert a short-term market problem into a permanent financial loss.

A Difficult Time to Sell Can Be an Amazing Time to Buy

There are two sides to every market.

The conditions creating difficulties for sellers can create tremendous opportunities for buyers. With fewer buyers competing, purchasers may be able to negotiate:

• A lower purchase price
• Seller-paid closing costs
• Interest-rate assistance
• Repairs or improvement allowances
• More favorable contract terms
• A sale that is not contingent upon disposing of another property

A homeowner who leases the current property instead of selling it may be able to preserve an exceptional mortgage while purchasing the next home in a buyer-friendly market.

That can create a powerful combination: hold an existing asset under favorable financing while acquiring another asset under favorable negotiating conditions.

Think Like an Investor Before You Sell

My name is Rick Baker, and I work from the Coldwell Banker Apex office in Frisco, Texas—approximately 20 minutes north of Dallas.

I have ranked among the top 10% of Coldwell Banker real estate professionals worldwide for at least a decade. In 2024, even though I consistently advised many homeowners not to sell, I still finished among the top 4% of Coldwell Banker agents worldwide.

Why would a Realtor tell people not to sell?

Because I think like an investor.

I began investing in residential real estate in the 1990s and previously owned dozens of rental properties simultaneously without any partners...Just my wife and owned them all. Investing was my foundation before it became my message. My objective is not simply to complete another transaction. It is to guide homeowners into a new understanding on how real estate can be retained, leveraged and used to create lasting family wealth.  Imagine this: the average homeowner, they say, owns 3.5 homes in their lifetime: the starter home, then the move-up home, and then maybe later on they'll downsize or they'll become more successful and move up into something substantial. Then they sell those homes over time, and they pay realtors 3 times.

Imagine this: you go into your golden years, and you have 2 or 3 properties that are paid off, throwing off literally thousands and thousands of dollars of free cash every month. At that point in time, your Social Security check becomes your vacation money.

If you'd like to have a conversation about  NOT selling your home and instead leasing it out to create a legacy and generational wealth for your children;  Please call Rick with Coldwell Banker at  972-836-8880.