Home Sellers Face Price Cuts After Fed Lifts Rates 25 Basis Points to 4%
Updated
Updated · Fox Business · Sep 17
Home Sellers Face Price Cuts After Fed Lifts Rates 25 Basis Points to 4%
3 articles · Updated · Fox Business · Sep 17
Summary
A 25-basis-point Fed hike to a 3.75%-4% target range is pushing more home sellers toward price reductions as qualified buyers retreat and listings sit longer.
Borrowing costs jumped with the move: the average 30-year fixed refinance rate rose to 7.14% from 6.87% a week earlier, while experts said hesitant buyers are increasingly waiting for better mortgage terms.
Millions of owners still hold mortgages below 4%, reinforcing a lock-in effect that keeps many would-be movers sidelined even as sellers who must relocate or sell for life events press ahead.
Real estate insiders said the market could stay frozen near term before shifting toward buyers in coming months, with the spring selling season likely to show whether discounts broaden.