Zillow Reports Decline in Home Sales Amid Rising Mortgage Rates
Home sales dropped by 10.7 percent from July to August, according to Zillow's latest market report, as rising mortgage rates continue to dampen buyer activity. The typical home value increased year over year by 1.3% to $369,678, while the average 30-year mortgage rate reached 6.5%, pushing monthly payments up 2%. This has made homeownership less affordable for many households. The rental market also shows signs of strain with rents rising 2.5% year over year to $1,948. Despite a rise in price cuts and inventory levels, the competitive nature of the housing market persists as nearly 30 percent of homes sold above list price last month. Zillow Chief Economist Mischa Fisher anticipates continued weakness through fall due to high mortgage rates. Mortgage rates recently hit a 13-month peak at 6.71% amid global tensions and are expected to rise further with the Federal Reserve likely to raise interest rates again on September 16.
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Topics: home sales decline housing affordability mortgage rates Zillow report