"Rising Mortgage Rates and Home Prices Squeeze Potential Buyers"
Originally Published 1 year ago — by Redfin News
Home prices in the U.S. have surged by 6.1% year over year, marking the largest increase in 15 months, while mortgage rates have risen above 7%, contributing to the overall cost of homeownership. This has led to a decline in pending home sales and a decrease in homebuyer demand, partly due to seasonal factors and high housing costs. Sellers are more active than buyers, with new listings up 8% year over year, and experts anticipate a potential increase in activity in the spring. However, the current market conditions are prompting real estate agents to advise both sellers and buyers to act sooner rather than later, as prices are expected to continue rising.