Key facts
- US housing inventory has increased slightly year-over-year.
- Rising mortgage rates are contributing to the inventory increase.
- Weaker housing demand is also a factor in the inventory rise.
- Mortgage rates are approaching yearly highs.
- Current inventory levels are closer to historical norms.
- Inventory levels are not at the record lows seen during the COVID-19 pandemic.
US housing inventory has experienced a modest increase when compared to the same period last year. This uptick in available homes for sale is largely a consequence of escalating mortgage rates and a concurrent decline in housing demand. The current mortgage rates are nearing their highest points observed within the current year. Despite this upward pressure on borrowing costs, the overall inventory of homes available on the market is aligning more closely with historical averages. This represents a significant departure from the record-low inventory levels that characterized the market during the COVID-19 pandemic. The market is thus moving away from the extreme conditions of recent years, suggesting a potential stabilization or shift in market dynamics.