The housing market continues to be impacted by high mortgage rates. That's reducing the supply of available housing, sending home prices to an all-time high.Home prices hit a record high in May even as home sales fell. High interest rates are keeping many would-be buyers and sellers on the sidelines.Home prices jumped to a record high last month, according to data out this week.
The relatively few homes that are selling are typically going for higher prices. The median price of a home sold in May was $419,300 — an all-time record. "At lower price points, people are being priced out of the home-buying market, and there's just less inventory when we think about homes that are under $250,000," says Jessica Lautz, deputy chief economist for the Realtors association.There is some good news: Interest rates have fallen slightly in recent weeks. The average rate on a 30-year mortgage this week was 6.
While higher interest rates have kept many homeowners feeling"locked in" to their current home, eventually life events can force some people to move.