Quick Buzz Feed
Oh, and of course, home prices are still skyhigh.
The pandemic ignited a housing boom as people took advantage of low mortgage rates while working remotely. However, rising inflation forced the Federal Reserve to increase interest rates, leading to a slowdown in home sales.
Despite falling mortgage rates, home sales remain at historic lows. Recent data shows existing home sales falling 1% month-over-month and 3.1% year-over-year to the lowest records since 2012.
While current average mortgage rates are significantly lower than their peak of 8.03%, they are still double the low rates seen during the pandemic, contributing to buyer hesitance in a high-price environment.
Election anxiety and confusion regarding new NAR rules are causing potential buyers to remain on the sidelines, as many are waiting to see how upcoming political changes may affect the housing market.
The aftermath of a major NAR settlement has introduced confusion about commission structures, which may dissuade buyers from entering the market, as new roles in cost-sharing emerge.