Something isn’t adding up in the U.S. housing market.
Existing home sales just fell to a 14-month low.
Meanwhile, housing inventory climbed to its highest level since 2019.
Yet home prices are still UP 1.6% YoY.
Here’s what’s happening:
Mortgage rates above 6.7% are weighing on buyers, while homeowners locked into much cheaper mortgages have little incentive to move and take on today’s higher rates.
So you get an unusual combination of:
– More homes for sale
– Fewer homes being sold
– Prices still refusing to break
And with the Fed expected to hike rates tomorrow, mortgage rates may stay elevated for longer.
Something isn't adding up in the U.S. housing market.
Existing home sales just fell to a 14-month low.
Meanwhile, housing inventory climbed to its highest level since 2019.
Yet home prices are still UP 1.6% YoY.
Here's what's happening:
Mortgage rates above 6.7% are weighing…
— Nic (@puckrin) September 15, 2026
The Stagnant Housing Market Is About to Face a 7% Mortgage
The housing market is approaching the highest mortgage rate since January 2025, likely spooking home buyers and home builders even more
Mortgage rates are closing in on 7% for the first time since the beginning of last year, promising more pain for prospective home buyers already wincing at record-high home prices and an uncertain economy.
Last week, 30-year fixed rates averaged 6.76% according to Freddie Mac. But daily rates have jumped since then and already surpassed 7%, according to Mortgage News Daily, which uses a different methodology.
The Fed is expected to deliver its first interest rate hike in 3 years, a blunt admission that the "soft landing" story is failing while squeezing buyers with higher credit card and mortgage costs.
byu/DumbMoneyMedia inBrokeonomics