The 30-year fixed-rate mortgage fell slightly to 7.32%, marking the fifth consecutive week above 7%, as affordability challenges persist. While national prices remain elevated, some markets are seeing corrections. In Austin, home prices dropped over 8% year-over-year, with sellers increasingly reducing listing prices to attract buyers.
Realtor.com reports that more than 20% of listings saw price cuts in September, signaling a shift from pandemic-era overheating. Experts attribute this to buyers becoming more educated and willing to wait, while sellers face pressure to price realistically. Nationally, the median home price rose 1.3% to $417,500, but existing-home sales fell 2.2%.
A "lock-in effect"—where homeowners avoid moving to keep ultra-low mortgage rates—continues to suppress supply. Inflation remains high at 3.7%, outpacing wage growth, further straining affordability. Oxford Economics forecasts housing activity may not improve until late 2027, when mortgage rates are expected to decline.
Until then, the market is expected to remain in a state of gridlock, though buyers may gain leverage as sellers adjust to cooling demand.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing