Higher Rates Contribute to Lower Home Prices

Even with rising mortgage interest rates, there are still buyers actively shopping for their next homes. And even though inventory is still sparse, the current rates are pressuring some sellers to lower their prices to make their homes more affordable for buyers. Recent data found that 5.8% of the homes for sale in August posted price cuts, while September saw even more sellers (6.5%) posting reduced prices.

States with the highest percentage of listings with price cuts for the week ending September 22 were Idaho, Nevada, Texas and Washington.

The median U.S. home sale price rose 3% year over year, reaching $420,846 in August, which was the largest annual increase since October 2022. In turn, this pushed the average principal and interest payment for a 30-year, fixed-rate loan to its highest point ever in July: $2,306.

Still, there's a silver lining to the cloudy market. The available inventory of homes is growing, which is an unusual but welcome trend for the fall season.

Source: housingwire.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.