30-year mortgage rate holds at 7.40%
“Seven percent is not a good rate, but they’re not looking for a 3% rate anymore,” Fratantoni said. “The Middle East conflict is absolutely the variable that really threw our forecast off.”
Sellers adjust as demand stalls
The sustained pressure is beginning to register in seller behavior. According to new Redfin data showing the median US asking price declined for the first time since March, prices fell 0.3% year over year in the four weeks ending October 11.
The share of active listings with a price cut has reached a record 22%. The median monthly mortgage payment stands at $2,777, also a record.
Pending home sales remain near 2021 lows, with annual declines posted across all 50 of the most populous US metro areas.
Desmond P. Smith, executive vice president and chief growth officer at United Wholesale Mortgage in Pontiac, Michigan, told MPA the environment demands more from originators.
