From Yahoo Finance: 2025-03-29 07:30:00

As mortgage rates rise, more homebuyers enter the market, pushing up prices and impacting future buyers. Sales of existing homes rose 4.2% to 4.26 million units in February, with a median price of $398,400. Job market resilience, low inventory, and buyer demand contribute to rising prices despite mortgage rates in the 6-7% range.

First-time homebuyers increase to 31% of sales, while investor purchases drop to 16%. Owner-occupants and second-home buyers compete with cash purchases, stabilizing prices. Buyers may need to adjust expectations or explore alternative financing options like adjustable-rate mortgages or interest-only loans. Refinancing later may also be an option to lower payments.

With each one percent gain in home price, there’s a $350 billion increase in housing equity for American property owners. Rising prices benefit current homeowners, providing increased equity for future purchases or investments. Timing and flexibility are key for buyers to navigate the competitive market and potentially benefit from quieter buying periods.



Read more at Yahoo Finance: Despite high mortgage rates, US home sales rise 4.2%. Here’s what this means for your next home purchase