What's Happening?
Mortgage rates have increased for the second consecutive week, with the 30-year fixed-rate mortgage averaging 6.34%, according to Freddie Mac. Despite the rise, rates remain below the 52-week average of 6.71%. Concurrently, nearly one in five homes across the U.S. saw price reductions in September, particularly in mid-tier listings between $350,000 and $500,000. This trend, coupled with increased housing inventory, provides buyers with more bargaining power, especially as seasonal trends align with softer pricing.
Why It's Important?
The rise in mortgage rates could impact home affordability, potentially slowing down the housing market's recovery. However, the concurrent price reductions and increased inventory offer a silver lining for buyers, who may find better deals in the current market. This shift in negotiating power towards buyers could lead to more competitive pricing and increased sales activity, benefiting those looking to purchase homes in the near term.
What's Next?
Economists suggest that the week of October 12-18 could be particularly favorable for buyers, as seasonal trends align with price cuts and increased supply. Buyers should take advantage of this window to secure better deals, while sellers may need to adjust their pricing strategies to remain competitive. Monitoring market conditions and consulting with real estate professionals can help stakeholders navigate these changes effectively.
