Existing home sales have been sputtering for months, and the latest numbers show a market that can't quite find its footing.
According to the National Association of Realtors, sales of previously owned homes have hovered near a two-decade low, dragged down by a brutal combination of high borrowing costs and stubbornly high asking prices.
For anyone hoping to buy, the headlines sound grim — but there's a silver lining buried in the data.
The average 30-year fixed mortgage rate has been bouncing around the mid-6% range, roughly double what buyers locked in during 2020 and 2021.
On a $400,000 loan, that difference adds hundreds of dollars to a monthly payment.
Many would-be sellers who refinanced at 3% are refusing to list, which keeps inventory tight and props up prices even as demand cools.
That supply crunch is starting to ease in some markets.
Builders have ramped up new construction, and more existing homeowners are listing because of life events — job moves, divorces, downsizing — rather than chasing a rate.
In parts of the South and Southwest, inventory is climbing and sellers are quietly cutting prices or offering concessions like closing-cost credits.
Asking for a home inspection, a repair credit, or a rate buydown is no longer laughable in many metros.
Some sellers are paying points to lower the buyer's mortgage rate for the first year or two.
That's real money — a buydown can shave hundreds off a monthly payment during the tightest early years of a loan.
Renters watching from the sidelines should do the math carefully.
Renting is still cheaper than owning in many expensive coastal cities, but in the Midwest and parts of the Sun Belt, the gap has narrowed enough that buying can make sense if you plan to stay put for at least five years.
Closing costs, property taxes, insurance, and maintenance all eat into the "rent vs. buy" advantage, so run the numbers with your actual budget, not a national average.
If you're shopping now, get pre-approved before you tour homes, and ask your lender about assumable loans — some FHA and VA mortgages can be taken over at the seller's old, lower rate.
Also check down-payment assistance programs through your state housing finance agency; many are underused simply because buyers don't know they exist.
The takeaway: this isn't a crash, and it isn't a boom.
It's a slow, lopsided market where patience and negotiation can pay off.
Final Thoughts
Buyers who wait for rates to fall could face more competition and higher prices when they do — so the best move depends on your timeline, not the headlines.