10/05/2026
US Mortgage Costs Hit 14-Month High
We’re seeing some notable shifts in the housing market lately, especially when it comes to affordability. By late Q3, the typical U.S. homebuyer’s monthly payment reached $2,600—a 14-month high. Mortgage costs have continued to climb, while median sale prices have held steady, with the national median home-sale price rising about 2% year over year to $399,000. This puts added pressure on buyers and is one reason pending sales have stayed flat month-over-month and are down compared to last year.
Mortgage-purchase applications have dipped slightly, and new listings fell month-over-month—likely a result of holiday timing—but are still modestly higher than the same period last year. I’ve found that in this environment, seller strategy matters more than ever. About 21% of active listings cut prices recently, and sharper pricing has been key to attracting serious interest; on the other hand, overpricing tends to create hesitation among buyers.
We are also seeing some improvements in inventory, with active supply up about 2% year over year to 1.5 million homes. Supply is close to four months, though still short of what we’d consider a balanced market. Navigating these dynamics—whether you’re buying, selling, or investing—calls for a steady hand and a deep understanding of current trends. My focus remains on helping clients make informed decisions at every step, even when the market landscape is evolving.
