Mortgage Rates Reverse Higher as Home Sales Remain Lackluster

Mortgage rates just flipped the script—climbing upward while the housing market keeps hitting snooze.

The Great Rate Reversal

Just when buyers thought they caught a break, borrowing costs are back on the rise. The trend reversal catches everyone off guard as the Federal Reserve maintains its hawkish stance.

Housing Market Stagnation

Home sales continue their sluggish trajectory despite seasonal expectations. Inventory piles up while buyers hesitate at the new rate reality.

The Affordability Squeeze

Each percentage point increase prices out another wave of potential homeowners. The math simply doesn't work for median-income families anymore.

Meanwhile, traditional finance institutions keep collecting fees while offering zero innovation—some things never change in the legacy system.

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Mortgage rates remain elevated compared to the past decade, but are also hovering NEAR a one-year low. In addition, affordability continues to be an issue for prospective homebuyers with home prices near all-time highs.

Existing Home Sales Remain Weak

Existing home sales were muted in August, falling by 0.2% month-over-month to an annualized rate of 4.00 million, which was above the consensus estimate of 3.95 million.

“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” said National Association of Realtors (NAR) chief economist Lawrence Yun.

The median U.S. home price rose by 2% in August to $422,600, the highest ever for the month. Prices have ticked lower from June when they reached an all-time high of $435,300.