More homes, more price cuts – but buyers still aren’t biting as mortgage rates climb

Homebuyers are still facing affordability headwinds due to elevated mortgage rates despite sellers increasingly cutting prices, a new report from Realtor.com shows.

Realtor.com’s latest monthly housing report showed that the share of listings with price cuts reached the highest level for the month of September on record, with 20.8% of active listings having a price reduction, which is an increase of 0.9 percentage points from last year.

Active inventory of homes for sale also increased by 5.4% from a year ago to more than 1.161 million homes, which narrowed the gap with the typical pre-pandemic inventory levels to 9.1% – the first time the gap is below 10% in the...