US homebuyer demand hits record low amid rising mortgage rates

US homebuyer demand has reached a record low, with the number of active buyers falling to approximately 967,000 in July. According to data from Redfin, sellers now outnumber buyers by 51.3%, shifting significant negotiating power to prospective buyers in most regions.

The decline in demand is attributed to rising mortgage rates, which peaked near 6.69% in late July and early August. This upward trend was linked to renewed US-Iran conflict concerns and subsequent inflation fears, alongside the Federal Reserve’s decision to hold interest rates steady.

Buyer’s market conditions currently prevail in 39 of the 49 major US metropolitan areas tracked, primarily in the South. Miami represents the strongest buyer’s market with 154% more sellers than buyers, followed by Nashville, Houston, San Antonio, and Austin. Conversely, seller’s markets remain concentrated in the Northeast and Midwest, with Nassau County, New York, identified as the strongest seller’s market.