It’s a good time to be house hunting in the South, as home buyers currently have the upper hand in many major areas—and could soon have more leverage in several more cities.

The U.S. housing market ticked further in favor of buyers in the third quarter, as about two-thirds of major metro areas currently favor buyers or are moving in that direction, according to a report released Monday by Realtor.com. Even though home buyers are gaining the negotiating advantage nationally and in many markets, they must also grapple with higher mortgage rates, noted Danielle Hale, chief economist at the Austin-based real estate site.

The 30-year mortgage rate, currently 7.4%, has been steadily climbing in recent weeks as it approaches the highest level in nearly three years. “Affordability is likely to continue as a top concern for shoppers, especially as mortgage rates above 7% limit how much home a fixed budget can buy,” Hale said in a statement.

Eight housing markets—Atlanta, Augusta, Charleston, Chattanooga, Denver, Jacksonville, Memphis and San Antonio—could soon tip into buyer’s-market territory, but even if buyers have more room to negotiate, that doesn’t necessarily translate to a more affordable purchase, added Jake Crimmel, a senior economist at Realtor.com. 

“As rates rise, the same monthly budget supports a lower home price,” Krimmel said. “Market leverage and purchasing power are moving in opposite directions right now.”

” By contrast, 27 metro areas are currently deemed seller’s markets, down from 39. Each metro area is positioned on one of the 12 clock positions that indicate whether buyers or sellers have the negotiating advantage and the clock winds through peak seller dynamics to loosening conditions that favor buyers into peak buyer dynamics and then through tightening conditions that revert back to favoring sellers.

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