| The New York Times
Construction on a home in Bainbridge Island, Wash., Nov. 30, 2022. Buyers are returning after being sidelined by a jump in borrowing costs, but experts say that the uncertain state of the economy is what will drive the market’s next moves. “Activity in the housing sector continues to weaken, largely reflecting higher mortgage rates,” Jerome Powell, the Fed chair, said after the central bank’s announcement.
The average rate on a 30-year fixed-rate mortgage fell to 6.09% this week, the mortgage finance giant Freddie Mac reported Thursday, down from 6.13% the week before. Rates had climbed to 7.08% in October, the highest level since 2002. More homes are being sold at or below list price, but many sellers are not budging, Bachaud said. New listings have slowed to a trickle, and homes are staying on the market for longer. Sales of existing homes fell 1.5% in December, the 11th consecutive monthly decline, according to the National Association of Realtors.