Home Listings Notch 20-Month High, yet Remain Just Half of the Long-Term Average

Rates resume climb, further cooling the market. After briefly dipping below 5 percent in early August, the average 30-year fixed-rate mortgage is surging again. Following the Federal Reserve’s fourth interest rate hike this year at the July meeting, the average 30-year mortgage rate reached the mid-5 percent band in the last full week of August. The measure is quickly approaching the 2022 peak of 5.8 percent set two months earlier in June. Higher borrowing costs have created challenges for potential homebuyers this summer. Home purchases have declined for six consecutive months, with the July tally down 19 percent year-over-year. As a result, more houses were available for purchase across the U.S. than in any period since November 2020. Given the revived upward pressure on mortgage rates and the likelihood of additional Fed rate hikes before year-end, this may continue to impact the market in the near term.