Mortgage Rates

Rates on the Rise — Mortgage rates continued to climb heading into October, with the average 30-year fixed-rate mortgage reaching 7.28% as of October 1, up from 7.03% the week before. After spending much of the summer in the mid-6% range, higher borrowing costs continue to put pressure on affordability for many prospective homebuyers.

Freddie Mac Primary Mortgage Market Survey®. Rates based on 30-year fixed-rate mortgages.

Homes Prices

More Room for Buyers — The national median listing price fell 1.3% year over year in August to $424,500. With homes taking longer to sell in many markets, sellers are facing greater pressure to price competitively, giving buyers more opportunity to negotiate than they may have had in recent years.

Housing Supply

Choice Is Making a Comeback — The number of homes available for sale continues to improve. Active listings reached approximately 1.14 million in August, up 3.6% from a year earlier. While more inventory doesn’t solve all of today’s affordability challenges, a larger selection can give buyers more time to compare homes and be selective about what fits their needs and budget.

Market Activity

Still Making Moves — Pending home sales edged up 0.3% in August despite higher mortgage rates. However, contract signings remained 4.7% below a year ago. Buyers are still making moves, but elevated borrowing costs continue to keep overall activity subdued as affordability remains a challenge.