U.S. mortgage rates retreated slightly this week but remained above 7% for a fourth consecutive week. According to data from Freddie Mac, the 30-year fixed mortgage fell from 7.18% to 7.12%. Resilient mortgage rates have lowered both supply and demand; while buyers are despondent due to high rates, homeowners are holding onto their property with lower rates rather than selling and purchasing new homes.
Still, Realtor.com chief economist Danielle Hale insists that the property market has remained relatively unchanged since mortgage rates first hiked. “Taking a step back, the big picture remains largely unchanged,” Hale explained. “The number of homes for sale remains low and the number of newly listed homes has lessened the gap, but continues to trail behind prior years. This has kept housing markets surprisingly competitive.”
Housing market data from Redfin showed that new property listings fell by 9.3% annually to 82,136 units this month. The median US home sale price is $378,725 in September; a 4.5% increase from last year.