US Housing Market Tilts to Buyers as Supply Hits Decade High, Mortgage Rates Near 7%

The US housing market shifted further in buyers' favor in August, with sellers outnumbering buyers by 58% — the widest gap since Redfin began tracking in 2013 — while supply reached 4.9 months, the highest in over a decade, per the National Association of Realtors. Demand remains subdued despite the inventory boost. Pending home sales fell 4.7% year over year in August, and mortgage purchase applications dropped 19% from a year earlier, the Mortgage Bankers Association reported. Mortgage rates have climbed toward 7% since the start of the US war with Iran, raising monthly payments. The median existing-home price rose 1.6% year over year in August, the 38th straight annual increase. The Federal Reserve raised rates on Wednesday for the first time in more than three years, signaling mortgage rates may stay elevated. Home tours are down 3% since January, per Redfin and ShowingTime data through September 10.