US Housing Market Shifts to Buyers as Mortgage Rates Soar Above 7 Percent in September 2026
2:42 · US Housing News · 2026-09-22
As of September 22, 2026, the US housing market is shifting toward buyers, but high borrowing costs are preventing a meaningful affordability rebound. Mortgage rates rose sharply over the past week. Freddie Macs 30 year average reached 6.95 percent for the week ending September 17, up from 6.76 percent the previous week and 6.26 percent a year earlier. Daily market estimates on September 21 put the rate above 7 percent. Supply is improving. Sellers outnumbered buyers by 58 percent in August, the widest gap since Redfin began tracking the measure in 2013. Existing homes represented 4.9 months of supply, the highest level in more than a decade. Yet prices remain firm. The median existing home price increased 1.6 percent year over year in August, extending the annual growth streak to 38 months. National home values were up about 1.3 percent year over year through August. Demand is weakening. Pending home sales fell 4.7 percent from a year earlier, mortgage applications for purchases declined 19 percent, and home tours were down 3 percent since the start of the year. Sellers are responding with incentives: concessions appeared in 44.7 percent of US home sales in August, up from 42.6 percent a year earlier, often through rate buydowns or closing cost assistance. Builders face a more difficult environment. The NAHB confidence index fell three points to 32 in September, its lowest reading since September 2025. Current sales conditions declined to 35, future expectations to 37, and buyer traffic remained weak at 23. Higher financing costs, labor shortages, and construction expenses continue to restrict new supply. Recent government data also showed August building permits at an annualized 1.394 million and housing starts at 1.275 million, both below July levels. The immediate outlook is therefore mixed: buyers have more negotiating power and builders are offering more incentives, but elevated mortgage rates, limited affordability, and still rising prices continue to suppress transactions. For great deals today, check out https://amzn.to/44ci4hQ