The housing market remains in a more balanced environment this week, giving buyers more negotiating power than they have enjoyed in several years. Inventory remains higher than it was a year ago, providing buyers with more homes to choose from and reducing the urgency that defined the highly competitive markets of 2021 through 2023. Existing-home sales have softened from June levels while inventory remains near a 4.6-month supply nationally, indicating a market that is gradually shifting toward equilibrium. Nationally, about one in five active listings received a price cut during July as sellers adjusted expectations to match current buyer demand.
Mortgage rates remain one of the biggest challenges for both buyers and sellers. The average 30-year fixed mortgage has climbed back to approximately 6.8%, continuing to impact affordability for many households. While recent movements in oil prices and Treasury yields have provided some optimism that rates could improve later this year, investors remain focused on upcoming employment and inflation reports, which could influence the Federal Reserve’s next policy decisions. Borrowers should expect continued rate volatility and work closely with their lender to determine the best time to lock their interest rate.
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