The increase in mortgage rates presents a challenge to the real estate market; however, at the same time, homeowners are capitalizing on the market's momentum by actively selling properties. According to data from Freddie Mac, the average rate for a 30-year fixed-rate mortgage has risen from 6.82% to 6.88%, primarily due to sustained inflation and a reassessment of Federal Reserve monetary policy.

While buyers face the challenge of rising mortgage rates, the proactive attitude of home sellers is evident in the spring selling season. According to Realtor.com® data, new listings of homes have increased by a staggering 30.1% compared to the same period last year. This indicates that despite changing market conditions, sellers remain optimistic about the future of real estate and are willing to sell their properties at this time.

realtor.com

However, for buyers, high mortgage rates undoubtedly present a test. Realtor.com economist Jia Ya Xu points out that even as we enter the spring selling season, buyers are still hoping for more favorable purchasing conditions, but the rise in mortgage rates has not provided them with much relief. This suggests that buyers may adopt a wait-and-see attitude, hoping for a future decline in mortgage rates.

To attract more buyers, home sellers have begun to significantly reduce prices. According to data, the share of price reductions in March reached 15%, the highest level since Realtor.com began tracking this data in 2017. This pricing strategy helps attract cautious buyers and encourages them to participate more actively in the market.

Despite the pressure that rising mortgage rates bring to buyers, the real estate market remains vibrant. The slight decline in home prices indicates an improvement in market affordability, especially in lower-priced homes. Additionally, with the increase in new listings and the growing inventory, buyers have more choices, which is a positive signal for the market's healthy development.