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US Housing Market: Shifting Sands Amid Rising Inventory and Lower Mortgage Rates

US Housing Market: Shifting Sands Amid Rising Inventory and Lower Mortgage Rates

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 The US housing market shows a mixed picture in the past 48 hours, with rising inventory and lower mortgage rates boosting buyer options amid seasonal slowdowns and seller caution. Active home inventory climbed 12.6 percent year over year, surpassing 1 million homes for the 32nd straight week, driven by homes lingering longer on the market rather than new listings, which fell 7.4 percent year over year[1]. Redfin reports new listings dropped 1.7 percent in the four weeks ending December 7, the sharpest decline in over two years, while pending sales fell 4.1 percent, the biggest dip in 10 months[2][3].

Mortgage rates ticked up slightly to 6.22 percent for the week ending December 11, from 6.19 percent prior, but remain well below last years 6.6 percent, following the Feds 0.25 percentage point cut on December 10[1][3][6]. Median list prices dipped to 415,000 dollars, with price per square foot down 1.1 percent year over year for the 14th week, and Redfins median sale price hit 389,123 dollars, up just 2 percent[1][2]. Delistings surged 37.9 percent year over year, the highest since tracking began in 2022, as sellers hold out rather than cut prices amid lock-in effects, especially in coastal areas[1][6].

Consumer behavior reflects holiday caution and economic uncertainty, with homes on market 4 to 6 days longer than last year and refinance applications up 14 percent, though purchase apps dipped slightly[1][3]. No major deals, partnerships, product launches, or regulatory shifts emerged in the past week, but experts note persistent affordability woes, with three-quarters of homes unaffordable for median-income households under 80,000 dollars yearly[6].

Compared to prior weeks, inventory growth slowed to its smallest since January 2024 at 4.6 percent, and months of supply rose to 4.6, nearing balance[2]. Industry leaders like Realtor.coms Hannah Jones highlight Midwest resilience due to milder lock-in, while Redfin agents cite wait-and-see attitudes on rates and tariffs[1][2]. Fed Chair Powell warns of structural issues no rate cuts can fully fix[9]. Overall, buyers gain leverage, but activity cools into year-end. (348 words)

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