More homeowners are listing their homes for sale, but properties are taking longer to sell as potential buyers face high prices and interest rates. New listings from home sellers jumped in May, up 13% from a year ago, according to the latest market report by Zillow. “You have an increase in sellers coming back on the market,” said Orphe Divounguy, a senior economist at Zillow. But with buyers not returning to the market, many new listings are just adding to inventory.
While mortgage rates could “change pretty quickly” or “on a dime,” said Fairweather, buyers are unlikely to see big movement in the near term. The Fed held rates steady at its June meeting and now anticipates just one rate cut this year. Its next meeting is July 30-31. “There’s no right answer for homebuyers who are deciding whether to wait or not,” Fairweather said. “It’s just up to chance when mortgage rates drop.