US housing market shifts toward buyers
SPY•About two-thirds of US metros favored buyers or were moving toward them in October, while the national market shifted from 3 o’clock to 4 o’clock. Mortgage rates rose to 7.4%, and a $2,000 monthly principal-and-interest budget bought 7.2% less home than before.
1. Market shifts
The national housing-market reading shifted to 4 o’clock from 3 o’clock last quarter, signaling a balanced market loosening toward buyers. About two-thirds of US metros favored buyers or were moving toward them.
2. Rates and regions
Mortgage rates rose 74 basis points, from 6.66% in late August to 7.4% on October 8. A $2,000 monthly principal-and-interest budget now buys 7.2% less home, a purchasing-power loss exceeding $22,000. The South accounted for 14 of 17 buyer’s markets, while 16 of 18 Midwest metros remained in seller’s territory.
