Existing home sales fell again last month, dropping to a pace not seen since the depths of the 2010 housing bust, according to data released by the National Association of Realtors.
For anyone trying to buy right now, that sounds like bad news.
Fewer sales doesn't mean nobody wants a house.
It means the people who want one can't afford the monthly payment, and the people who already own one can't afford to give up the cheap mortgage they locked in years ago.
A typical buyer today faces a rate near 7% instead of the 3% their neighbor got in 2021.
On a $400,000 loan, that's roughly $1,000 more per month in interest alone — money that never touches the principal and never comes back.
Roughly 60% of homeowners with mortgages hold rates below 4%, which means listing the house means trading a $1,400 payment for a $2,600 one.
Many simply stay put, which keeps inventory historically thin and props up prices even as demand cools.
That combination — high rates, high prices, low supply — is why so many listings sit for weeks with price cuts.
Buyers finally have some leverage to negotiate repairs, closing costs, and seller concessions.
It just doesn't feel like leverage when the payment is still brutal.
If you're renting and waiting for a crash, the wait has already stretched past two years and rent hasn't cooperated either.
If you're saving for a down payment, high-yield savings accounts are still paying meaningfully more than they did in 2021, so parked cash is at least earning something.
Average APRs remain above 20%, so carrying a balance while house-hunting quietly eats the down payment you're trying to build.
Paying that down before applying for a mortgage also improves the debt-to-income ratio lenders care about most.
For sellers, the honest advice is that the pandemic-era bidding war is over.
Overpricing by 10% and hoping for a miracle usually results in three months of showings and a final sale below what a realistic list price would have fetched in week one.
If rates drift toward 6%, a wave of locked-in owners may finally list, inventory opens up, and competition returns.
If rates stay put, expect more of the same stalemate — slow sales, stubborn prices, and a lot of frustrated people on both sides of the closing table. **Our take:** The housing market isn't crashing, it's stalling, and stalled markets punish the impatient.
If you can wait and keep your credit clean, time is on your side.
Final Thoughts
If you can't, negotiate hard — in this market, sellers need you more than they'll admit.