US 30-Year Mortgage Rates Hit 7.4% as Buyers Retreat From a 63% Seller Glut
Updated
Updated · The Washington Post · Oct 12
US 30-Year Mortgage Rates Hit 7.4% as Buyers Retreat From a 63% Seller Glut
3 articles · Updated · The Washington Post · Oct 12
Summary
7.4% mortgage rates this week pushed 30-year borrowing costs to a three-year high, keeping many would-be homebuyers on the sidelines even as competition for homes eases.
The rate surge followed higher inflation and Federal Reserve tightening after the U.S. war in Iran, while Treasury yields tied to mortgage pricing also climbed.
Buyer demand has already weakened sharply: Redfin said September was the strongest buyer’s market in its records, with sellers outnumbering buyers nationally by 63% and inventory nearing five months, the highest in more than a decade.
That imbalance is giving active buyers more leverage, including price cuts, inspections and seller credits that were rare during the pandemic-era frenzy.
Still, slower price growth and better negotiating power have not solved affordability, leaving the housing market sluggish and vulnerable to further cooling.