After a frenzied start to the year, homebuying conditions are improving as inventories climb, price growth slows, and competition eases nationwide. After months of steady gains, 30-year mortgage rates fell to 5.3% from a 2022 high of 5.81%, and while many prospective buyers remain priced out, those who can still afford to purchase homes are seeing a much more favorable buying landscape, Redfin reports.
Less demand also means a smaller pool of buyers left to compete for a larger supply of for-sale homes. Still, the median home sale price rose 13% year-over-year to $396,000 during the four-week period ending July 3, and until inflation subsides, more rate hikes are likely throughout the remainder of 2022.
“Conditions for homebuyers are improving. Housing remains expensive, but mortgage rates just posted their biggest weekly drop since 2008, which makes buying a home a bit more affordable,” said Redfin chief economist Daryl Fairweather. “One way buyers can take advantage of the shift in the market is seeking concessions from sellers. That could include asking the seller to buy down your mortgage rate, pay for repairs or cover some of your closing costs.”