“The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration,” Khater said.
Read more: US home price growth slows to 18%
Steve Reich, chief operations officer of Finance of America Mortgage, commented: “Home-price appreciation continues to become more gradual as the Fed has worked to manage inflation and raised mortgage interest rates. Data shows t. was a significant boost in inventory in June — active listings increased by about 18% compared to the same period last year. This spike can likely be attributed to the fact that more sellers put their homes on the market during the popular summer homebuying season, which may have reduced competition in certain markets.
“While mortgage rates were higher compared to this time last year and the 30-year fixed mortgage is hovering above 5%, rates are comparable to pre-pandemic levels. For that reason, I believe that prospective homebuyers should look at the glass as half full as they continue or begin their home search. More inventory and slowing demand may provide some wiggle room, and savvy buyers may be able to take advantage of this opportunity.”