The 30-year fixed-rate mortgage rose to 5.89% for the week ending September 8th, its highest level since November 2008, according to Redfin. As a result, buyers pulled back from house tours and home sales and fewer homes sold above list price than at any time since February 2021. The typical home sold during the four weeks ending September 4 went for 0.3% below final list price, a small but major shift after a year and a half of homes selling well above list price.
New listings also fell 18% year-over-year during the first week of September as cooling demand caused fewer homeowners to list their properties.
“The housing market always cools down this time of year, but this year, I expect fall and winter to be especially frigid as sales dry up more than usual,” said Redfin Chief Economist Daryl Fairweather. “Thanks largely to mortgage rates near or even above 6%, potential homebuyers and sellers are focusing on the back-to-school season and enjoying the last days of summer rather than getting into an uncertain market. It may feel like you are playing roulette when it comes to timing when to lock your mortgage rate, but just remember you can refinance when eventually rates do turn down.”
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
