The 30-year fixed-rate mortgage rose to 5.89% for the week ending September 8th, its highest level since November 2008, according to Redfin. As a result, buyers pulled back from house tours and home sales and fewer homes sold above list price than at any time since February 2021. The typical home sold during the four weeks ending September 4 went for 0.3% below final list price, a small but major shift after a year and a half of homes selling well above list price.
New listings also fell 18% year-over-year during the first week of September as cooling demand caused fewer homeowners to list their properties.
“The housing market always cools down this time of year, but this year, I expect fall and winter to be especially frigid as sales dry up more than usual,” said Redfin Chief Economist Daryl Fairweather. “Thanks largely to mortgage rates near or even above 6%, potential homebuyers and sellers are focusing on the back-to-school season and enjoying the last days of summer rather than getting into an uncertain market. It may feel like you are playing roulette when it comes to timing when to lock your mortgage rate, but just remember you can refinance when eventually rates do turn down.”