US Housing Market Faces Cooling Trend as Mortgage Rates Soar and Sellers Cut Prices

The US housing market is cooling down, presenting a rare opportunity for homebuyers as sellers slash prices, according to Zillow. The percentage of home listings with price cuts has risen to 9.2%, surpassing the rate from the same period in 2019. Factors such as increased inventory and slightly lower demand due to higher mortgage rates have contributed to this trend. While improved affordability provides some relief, experts caution that significant improvements are unlikely until mortgage rates decrease. Zillow economists predict home prices will continue to increase through the first half of 2024.