Mortgage rates reached 6.53% on Friday, marking the highest level since September 2025. Over the week, the active inventory of homes increased 5.6% year-over-year, while home prices remained stable compared to last year.
Spring usually brings a surge in home sales in the United States, but this year, market strength has shifted toward buyers due to several factors, including rising mortgage rates and broader economic effects. Increasing oil prices and inflation prompted the Federal Reserve to adjust its policies after a previous rate cut aimed at controlling inflation.
Thirty-year mortgage rates started the year low but have recently jumped to 6.53%, just 18 basis points below last year. Higher interest rates are putting pressure on purchasing power, but the longer time homes remain on the market, along with sellers being more willing to offer price reductions, has strengthened buyers’ positions.
Active inventory rose 5.6% year-over-year for the week ending March 14, despite a 1.4% decline in new listings. The increase in supply is mostly due to the longer duration homes remain on the market, rather than an influx of new sellers. Jonathan Miller of Street Matrix believes that inventory is currently the most important factor in the market and doubts that there will be a significant drop in interest rates this year.
