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US Housing Market Cooling Fast: Rising Mortgage Rates Hit Affordability in 2024

US Housing Market Cooling Fast: Rising Mortgage Rates Hit Affordability in 2024

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 The US housing market over the past 48 hours shows a cooling trend with rising mortgage rates squeezing affordability, as the 30-year fixed rate hit 6.38 percent this week, up from recent dips below 6 percent, driven by market jitters and global tensions like the Iran conflict.[9][5][2] Median sale prices reached 389,269 dollars for the four weeks ending March 22, up 1.8 percent year-over-year, pushing monthly payments to 2,695 dollars at 6.22 percent rates, the highest since last June though down 1.5 percent from a year ago.[2]

Inventory is expanding, with 4.3 to 4.5 months supply nationally, up slightly from last year and marking a shift toward buyers, who closed 78 percent of February deals below asking price, especially in Seattle, Boston, and DC where discounts hit 60 percent.[1][2][6] Active listings topped 1 million but dipped 1.7 percent year-over-year, while new listings rose 0.3 percent; homes now take 56 to 66 days to sell, the slowest February in a decade.[2][6] Notably, sellers outnumber buyers by nearly 630,000, the widest gap since 2013.[8]

Affordability remains dire, with homes unaffordable versus historic norms in 97 percent of counties per ATTOMs Q1 report, despite steady median prices at 360,000 dollars.[4][7] Regional splits persist: Sun Belt areas like Florida and Texas see sharp price drops up to 6 percent, while Northeast and Midwest metros like Newark and Chicago gain over 6 percent.[1]

Compared to early March, when rates briefly fell and pending sales rose 1.8 percent in February though down 0.8 percent yearly, recent volatility has sidelined buyers, with applications down 10.5 percent last week.[6][5][3] Zillow warns prolonged high rates could drag 2026 sales down 0.73 percent if unemployment ticks up.[3] Leaders like Redfin note buyers gaining leverage, with 1.8 percent discounts typical, as demand waits for rate relief.[2][6]

No major deals, launches, or regulatory shifts emerged in the last 48 hours, but the market teeters on rate sensitivity heading into spring.[1][9] (298 words)

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