Will Home Prices Become Affordable This Year?

The housing market might finally be on the verge of a shift.

While summer sales have been slow so far, signs suggest that activity could pick up by the end of the season as mortgage rates drop to their lowest levels in about 15 months, and the influx of resale inventory provides buyers with more choices.

There’s more good news for potential buyers: the median price of new homes has fallen below that of resale homes, with builders still offering incentives.

However, experts believe the market will only gain momentum when mortgage rates decrease enough to alleviate affordability challenges and encourage homeowners with low-rate mortgages to sell, thereby significantly increasing inventory to meet demand.