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US Housing Market Cooling Amidst Affordability Pressures: Cash-Out Refis, Inventory Shifts, and Builder Adaptations
The U.S. housing market in the past 48 hours shows cooling price momentum, rising inventory, and selective strength in new construction as builders and lenders adapt to persistent affordability pressures[1][5][7].
According to ICE’s August Mortgage Monitor released yesterday, mortgage lending just hit its highest quarterly volume since 2022, powered by purchases and a surge in cash‑out refinances as homeowners tap record equity[1]. Cash‑out refis made up 59 percent of Q2 refinance activity; 70 percent of those borrowers accepted an average 1.45 percentage point higher rate to access roughly 94,000 dollars in equity, raising monthly payments by about 590 dollars on average[1]. This signals consumers prioritizing liquidity despite elevated rates and underscores lenders’ focus on equity‑tapping products[1].
Inventory continues to shift higher nationally, with active listings up 24.8 percent year over year in July to 1.1 million, the 21st straight month of annual gains; days on market lengthened to 58 and price reductions reached 20.6 percent, pointing to softer demand and more negotiating room for buyers[7]. Regional data echo this: local August updates cite inventory at multi‑year highs with mixed pricing, as some neighborhoods hold steady while others soften[2]. Money’s reporting highlights larger price declines in several Florida metros as supply builds and pandemic migration fades, with builders’ incentives adding downward pressure[8].
On pricing, Realtor.com data summarized by Fortune shows the median new‑construction list price last quarter at about 450,000 dollars versus roughly 418,000 dollars for existing homes; notably, new‑build prices fell year over year in 30 large metros as builders chase affordability with incentives and smaller footprints, especially in the South and West[5]. That aligns with rising starts in select markets and the expectation of more choices and competitive offers as new supply delivers[3][5].
Market context versus prior reporting: sales volumes remain historically weak even as prices sit near records; multiple 2025 reads cite a 30‑year low in existing‑home sales tied to affordability and rate lock‑in, with builders partially offsetting via buydowns and discounts[4][6][5]. Current consumer behavior reflects flexibility and tradeoffs: more buyers expanding search areas, accepting longer commutes, or choosing older and smaller homes to make budgets work[7]. Industry leaders are responding by leaning into rate buydowns, price cuts on select communities, and equity‑based lending to sustain throughput while inventory normalizes and price appreciation slows[5][1][7].
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
According to ICE’s August Mortgage Monitor released yesterday, mortgage lending just hit its highest quarterly volume since 2022, powered by purchases and a surge in cash‑out refinances as homeowners tap record equity[1]. Cash‑out refis made up 59 percent of Q2 refinance activity; 70 percent of those borrowers accepted an average 1.45 percentage point higher rate to access roughly 94,000 dollars in equity, raising monthly payments by about 590 dollars on average[1]. This signals consumers prioritizing liquidity despite elevated rates and underscores lenders’ focus on equity‑tapping products[1].
Inventory continues to shift higher nationally, with active listings up 24.8 percent year over year in July to 1.1 million, the 21st straight month of annual gains; days on market lengthened to 58 and price reductions reached 20.6 percent, pointing to softer demand and more negotiating room for buyers[7]. Regional data echo this: local August updates cite inventory at multi‑year highs with mixed pricing, as some neighborhoods hold steady while others soften[2]. Money’s reporting highlights larger price declines in several Florida metros as supply builds and pandemic migration fades, with builders’ incentives adding downward pressure[8].
On pricing, Realtor.com data summarized by Fortune shows the median new‑construction list price last quarter at about 450,000 dollars versus roughly 418,000 dollars for existing homes; notably, new‑build prices fell year over year in 30 large metros as builders chase affordability with incentives and smaller footprints, especially in the South and West[5]. That aligns with rising starts in select markets and the expectation of more choices and competitive offers as new supply delivers[3][5].
Market context versus prior reporting: sales volumes remain historically weak even as prices sit near records; multiple 2025 reads cite a 30‑year low in existing‑home sales tied to affordability and rate lock‑in, with builders partially offsetting via buydowns and discounts[4][6][5]. Current consumer behavior reflects flexibility and tradeoffs: more buyers expanding search areas, accepting longer commutes, or choosing older and smaller homes to make budgets work[7]. Industry leaders are responding by leaning into rate buydowns, price cuts on select communities, and equity‑based lending to sustain throughput while inventory normalizes and price appreciation slows[5][1][7].
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
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By Inception Point AiThe U.S. housing market in the past 48 hours shows cooling price momentum, rising inventory, and selective strength in new construction as builders and lenders adapt to persistent affordability pressures[1][5][7].
According to ICE’s August Mortgage Monitor released yesterday, mortgage lending just hit its highest quarterly volume since 2022, powered by purchases and a surge in cash‑out refinances as homeowners tap record equity[1]. Cash‑out refis made up 59 percent of Q2 refinance activity; 70 percent of those borrowers accepted an average 1.45 percentage point higher rate to access roughly 94,000 dollars in equity, raising monthly payments by about 590 dollars on average[1]. This signals consumers prioritizing liquidity despite elevated rates and underscores lenders’ focus on equity‑tapping products[1].
Inventory continues to shift higher nationally, with active listings up 24.8 percent year over year in July to 1.1 million, the 21st straight month of annual gains; days on market lengthened to 58 and price reductions reached 20.6 percent, pointing to softer demand and more negotiating room for buyers[7]. Regional data echo this: local August updates cite inventory at multi‑year highs with mixed pricing, as some neighborhoods hold steady while others soften[2]. Money’s reporting highlights larger price declines in several Florida metros as supply builds and pandemic migration fades, with builders’ incentives adding downward pressure[8].
On pricing, Realtor.com data summarized by Fortune shows the median new‑construction list price last quarter at about 450,000 dollars versus roughly 418,000 dollars for existing homes; notably, new‑build prices fell year over year in 30 large metros as builders chase affordability with incentives and smaller footprints, especially in the South and West[5]. That aligns with rising starts in select markets and the expectation of more choices and competitive offers as new supply delivers[3][5].
Market context versus prior reporting: sales volumes remain historically weak even as prices sit near records; multiple 2025 reads cite a 30‑year low in existing‑home sales tied to affordability and rate lock‑in, with builders partially offsetting via buydowns and discounts[4][6][5]. Current consumer behavior reflects flexibility and tradeoffs: more buyers expanding search areas, accepting longer commutes, or choosing older and smaller homes to make budgets work[7]. Industry leaders are responding by leaning into rate buydowns, price cuts on select communities, and equity‑based lending to sustain throughput while inventory normalizes and price appreciation slows[5][1][7].
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
According to ICE’s August Mortgage Monitor released yesterday, mortgage lending just hit its highest quarterly volume since 2022, powered by purchases and a surge in cash‑out refinances as homeowners tap record equity[1]. Cash‑out refis made up 59 percent of Q2 refinance activity; 70 percent of those borrowers accepted an average 1.45 percentage point higher rate to access roughly 94,000 dollars in equity, raising monthly payments by about 590 dollars on average[1]. This signals consumers prioritizing liquidity despite elevated rates and underscores lenders’ focus on equity‑tapping products[1].
Inventory continues to shift higher nationally, with active listings up 24.8 percent year over year in July to 1.1 million, the 21st straight month of annual gains; days on market lengthened to 58 and price reductions reached 20.6 percent, pointing to softer demand and more negotiating room for buyers[7]. Regional data echo this: local August updates cite inventory at multi‑year highs with mixed pricing, as some neighborhoods hold steady while others soften[2]. Money’s reporting highlights larger price declines in several Florida metros as supply builds and pandemic migration fades, with builders’ incentives adding downward pressure[8].
On pricing, Realtor.com data summarized by Fortune shows the median new‑construction list price last quarter at about 450,000 dollars versus roughly 418,000 dollars for existing homes; notably, new‑build prices fell year over year in 30 large metros as builders chase affordability with incentives and smaller footprints, especially in the South and West[5]. That aligns with rising starts in select markets and the expectation of more choices and competitive offers as new supply delivers[3][5].
Market context versus prior reporting: sales volumes remain historically weak even as prices sit near records; multiple 2025 reads cite a 30‑year low in existing‑home sales tied to affordability and rate lock‑in, with builders partially offsetting via buydowns and discounts[4][6][5]. Current consumer behavior reflects flexibility and tradeoffs: more buyers expanding search areas, accepting longer commutes, or choosing older and smaller homes to make budgets work[7]. Industry leaders are responding by leaning into rate buydowns, price cuts on select communities, and equity‑based lending to sustain throughput while inventory normalizes and price appreciation slows[5][1][7].
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI