More Sellers Dropping Prices, but Buyers See Little Relief

While the percentage is low, more home are sellers are dropping their asking prices than in the past six months. For the four weeks ending May 1, 15% of home sellers dropped their asking prices, up from 9% a year earlier, according to Redfin.

With the 30-year fixed-rate mortgage averaging 5.27% last week, up from 2.96% just one year ago, more home buyers may be starting to feel priced out by the rapid rise in mortgage rates, which may be making sellers have to adjust slightly. However, even as mortgage rates climb, sellers are finding they have an advantage. Without much competition, and with low inventories, they’re finding they can continue to sell for a premium.

Read More