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"Navigating the Shifting US Housing Market: Affordability, Buyer Hesitancy, and Federal Policy Impacts"
The US housing industry is experiencing a complex period of transition as of late July 2025. Despite signs of economic stability, the market is contending with stubbornly high mortgage rates, record prices, and buyer hesitancy. According to Freddie Mac on July 24, the average 30-year fixed mortgage rate is 6.74 percent, nearly unchanged from last week and just slightly lower than a year ago. The 15-year fixed rate ticked down to 5.87 percent, but these rates remain elevated compared to pre-pandemic levels, contributing to persistent affordability issues for new buyers.
Existing home sales in June dropped 2.7 percent from May, hitting the lowest level in nine months at a seasonally adjusted annual rate of 3.93 million. This marks a continuation of tepid sales activity that has characterized the market for over a year, especially as affordability concerns and reluctance to swap low-rate mortgages keep would-be buyers and sellers on the sidelines. While supply is rising, with national housing inventory up nearly 17 percent year over year, home prices continue to climb. In June, the median existing-home price hit a record high of $435,300, a 2 percent increase from last year.
Consumer behavior is shifting: more buyers are holding out for lower prices or rates, while many homeowners are delisting their properties rather than sell at unfavorable prices. Delistings surged 47 percent over the past year. There are also more price cuts, with 24 percent of Zillow listings seeing reductions as sellers in the South and West try to attract buyers, but most major metro areas remain unaffordable for first-time buyers.
On the regulatory front, the recent boost to the SALT deduction cap may offer some relief in high-tax areas, but the impact is localized. Meanwhile, renters are staying put as the cost of owning remains prohibitively high for many, with rents down 2.7 percent from their 2022 peak.
Compared to previous years, the current market features more balance between buyers and sellers, but remains geographically uneven and climate by affordability challenges. Leading firms are responding with aggressive price adjustments and lobbying for supportive policies, yet meaningful improvement may hinge on future moves from the Fed regarding rate cuts.
For great deals today, check out https://amzn.to/44ci4hQ
Existing home sales in June dropped 2.7 percent from May, hitting the lowest level in nine months at a seasonally adjusted annual rate of 3.93 million. This marks a continuation of tepid sales activity that has characterized the market for over a year, especially as affordability concerns and reluctance to swap low-rate mortgages keep would-be buyers and sellers on the sidelines. While supply is rising, with national housing inventory up nearly 17 percent year over year, home prices continue to climb. In June, the median existing-home price hit a record high of $435,300, a 2 percent increase from last year.
Consumer behavior is shifting: more buyers are holding out for lower prices or rates, while many homeowners are delisting their properties rather than sell at unfavorable prices. Delistings surged 47 percent over the past year. There are also more price cuts, with 24 percent of Zillow listings seeing reductions as sellers in the South and West try to attract buyers, but most major metro areas remain unaffordable for first-time buyers.
On the regulatory front, the recent boost to the SALT deduction cap may offer some relief in high-tax areas, but the impact is localized. Meanwhile, renters are staying put as the cost of owning remains prohibitively high for many, with rents down 2.7 percent from their 2022 peak.
Compared to previous years, the current market features more balance between buyers and sellers, but remains geographically uneven and climate by affordability challenges. Leading firms are responding with aggressive price adjustments and lobbying for supportive policies, yet meaningful improvement may hinge on future moves from the Fed regarding rate cuts.
For great deals today, check out https://amzn.to/44ci4hQ
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By Quiet. PleaseThe US housing industry is experiencing a complex period of transition as of late July 2025. Despite signs of economic stability, the market is contending with stubbornly high mortgage rates, record prices, and buyer hesitancy. According to Freddie Mac on July 24, the average 30-year fixed mortgage rate is 6.74 percent, nearly unchanged from last week and just slightly lower than a year ago. The 15-year fixed rate ticked down to 5.87 percent, but these rates remain elevated compared to pre-pandemic levels, contributing to persistent affordability issues for new buyers.
Existing home sales in June dropped 2.7 percent from May, hitting the lowest level in nine months at a seasonally adjusted annual rate of 3.93 million. This marks a continuation of tepid sales activity that has characterized the market for over a year, especially as affordability concerns and reluctance to swap low-rate mortgages keep would-be buyers and sellers on the sidelines. While supply is rising, with national housing inventory up nearly 17 percent year over year, home prices continue to climb. In June, the median existing-home price hit a record high of $435,300, a 2 percent increase from last year.
Consumer behavior is shifting: more buyers are holding out for lower prices or rates, while many homeowners are delisting their properties rather than sell at unfavorable prices. Delistings surged 47 percent over the past year. There are also more price cuts, with 24 percent of Zillow listings seeing reductions as sellers in the South and West try to attract buyers, but most major metro areas remain unaffordable for first-time buyers.
On the regulatory front, the recent boost to the SALT deduction cap may offer some relief in high-tax areas, but the impact is localized. Meanwhile, renters are staying put as the cost of owning remains prohibitively high for many, with rents down 2.7 percent from their 2022 peak.
Compared to previous years, the current market features more balance between buyers and sellers, but remains geographically uneven and climate by affordability challenges. Leading firms are responding with aggressive price adjustments and lobbying for supportive policies, yet meaningful improvement may hinge on future moves from the Fed regarding rate cuts.
For great deals today, check out https://amzn.to/44ci4hQ
Existing home sales in June dropped 2.7 percent from May, hitting the lowest level in nine months at a seasonally adjusted annual rate of 3.93 million. This marks a continuation of tepid sales activity that has characterized the market for over a year, especially as affordability concerns and reluctance to swap low-rate mortgages keep would-be buyers and sellers on the sidelines. While supply is rising, with national housing inventory up nearly 17 percent year over year, home prices continue to climb. In June, the median existing-home price hit a record high of $435,300, a 2 percent increase from last year.
Consumer behavior is shifting: more buyers are holding out for lower prices or rates, while many homeowners are delisting their properties rather than sell at unfavorable prices. Delistings surged 47 percent over the past year. There are also more price cuts, with 24 percent of Zillow listings seeing reductions as sellers in the South and West try to attract buyers, but most major metro areas remain unaffordable for first-time buyers.
On the regulatory front, the recent boost to the SALT deduction cap may offer some relief in high-tax areas, but the impact is localized. Meanwhile, renters are staying put as the cost of owning remains prohibitively high for many, with rents down 2.7 percent from their 2022 peak.
Compared to previous years, the current market features more balance between buyers and sellers, but remains geographically uneven and climate by affordability challenges. Leading firms are responding with aggressive price adjustments and lobbying for supportive policies, yet meaningful improvement may hinge on future moves from the Fed regarding rate cuts.
For great deals today, check out https://amzn.to/44ci4hQ