Key facts
- U.S. home prices are experiencing a record drop.
- Buyers are returning to the U.S. market as it becomes more affordable.
- Sellers are withdrawing homes from the market at the fastest pace since March 2020.
- In April, 5.8% of U.S. home listings were withdrawn.
- High mortgage rates and strained affordability are contributing factors to the market cooling.
- Housing markets in U.S. suburbs like Frisco and Prosper are experiencing a slowdown.
- Tech layoffs, increased visa costs, and stricter immigration rules are affecting some U.S. housing markets.
- Former President Trump's H-1B visa policies are reportedly cooling housing prices in Texas suburbs.
- Sellers of UK country homes are reducing prices due to rising costs and low demand.
- The average U.S. long-term mortgage rate has fallen to 6.48%.
- Mortgage and refinance interest rates increased on Wednesday, June 3, 2026.
The U.S. housing market is experiencing a significant cooling, marked by a record drop in home prices that is reportedly making the market more affordable and attracting buyers. This downturn is accompanied by sellers withdrawing properties at an accelerated rate, reaching the fastest pace since March 2020. In April, 5.8% of U.S. home listings were withdrawn, a share tied for the highest since March 2020. This trend is attributed to a confluence of factors including weakening buyer demand, high mortgage rates straining affordability, and sellers holding onto pandemic-era price expectations.
Specific segments of the market are particularly affected. Housing markets in U.S. suburbs like Frisco and Prosper, which were previously boosted by H-1B visa holders and corporate relocations, are now slowing down. This slowdown is linked to tech layoffs, increased visa costs, stricter immigration policies, and the disruptive influence of AI. Former President Trump's H-1B visa policies are also cited as a factor cooling housing prices in Texas suburbs, with potential nationwide implications, suggesting this cooling may be an intended policy outcome.
In contrast to the cooling U.S. market, the UK is seeing sellers of large, luxurious country homes reduce prices. This is driven by rising maintenance costs, tax changes, and a return to office work, leading to an oversupply of properties relative to buyer demand. Amidst these market shifts, U.S. mortgage rates have seen fluctuations. One report indicates a decrease to 6.48% for long-term mortgage rates, retreating from a nine-month high. However, another report notes a rise in mortgage and refinance interest rates on Wednesday, June 3, 2026, signaling a potential shift.