Mortgage Rates

Modest Rate Relief at Last — Mortgage rates have dropped to 6.58%* at the end of August, the lowest in nearly a year after hovering just under 7% for months. That’s added roughly $20,000 in purchasing power for buyers since May. Rates probably won’t fall much more in the short term, since the upcoming Fed cut is already priced in. Still, future cuts or market shifts could bring even better opportunities.

Homes Prices

Rising Prices, Rising Buying Power — The median U.S. home sale price hit $394,498 in August, up 1.9% from last year, the fastest growth in four months. Monthly payments have eased thanks to lower rates, giving buyers some relief. In July, about 439,000 homes were affordable to median-income households which is a 20% jump from last year and the highest level in nearly three years.

Housing Supply

More Homes, More Options for Buyers — Total housing inventory is up 18% from last year, giving buyers more choices and easing price pressures. In July, there were over 2 million homes for sale in the U.S., a 12% year-over-year increase, including 579,758 newly listed homes. Homes spent a median of 43 days on the market, up 7 days from last year, while the average months of supply stayed at 3 months.

Market Activity

Buyers Hold the Cards — Active buyers remain relatively low, while sellers continue to outnumber them. There are 36.3% more sellers than buyers, 518,800 more to be exact, which is the largest gap in recent history. This imbalance gives buyers more leverage in negotiations, keeping the market tilted in their favor.