Housing market stabilizes as affordability remains steady.

Despite the Fed raising its policy rate, average mortgage rates have ticked down, making homes as affordable as they were last year. The gap between this year and last year’s affordability is narrowing, with mortgage rates just one percentage point higher than they were this time a year ago. However, the lack of inventory remains a primary obstacle to affordability, and financial challenges due to high home prices, high mortgage rates, and high inflation have been cutting deep into buyers' budgets. Meanwhile, sellers who have built up home equity are better positioned to find their next home in a cooling market, but may need to temper expectations for the sale of their current home.