As mortgage interest rates return to above 7%, the US real estate market has cooled down further. Sellers cut prices one after another last month, and few buyers have more bargaining power. According to seasonally adjusted data from real estate brokerage firm Redfin, the number of second-hand housing contracts plummeted 4% month-on-month in September to the lowest level since 2014, the biggest drop in more than three years. Meanwhile, the supply of homes for sale rose to its highest level since March 2020. Redfin chief economist Daryl Fairweather said, “There has been a marked shift in the popularity of the real estate industry. When interest rates rise like this, fewer people can afford to buy a home, which means sales are bound to drop.” According to Freddie Mac data, the average interest rate for 30-year mortgages jumped from 6.66% at the end of August to 7.4% on October 8, the highest level in nearly three years, and more than 1 percentage point higher than the same period last year.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.