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Buyers Gain Ground, Even as Rates Rise

  • Jun 9
  • 1 min read

This summer’s buyers may have more leverage than they think.

Buyers Gain Ground, Even as Rates Rise Mortgage rates hit a 9-month high in May, but that hasn’t stopped buyers from moving forward. Rates jumped over 20 basis points in May amid market volatility, settling around 6.5% by month end. But buyers are still active: Pending sales rose 4.3% Year-over-Year in May, the 6th straight month of annual growth. 30-year rates are projected to hold in the 6.4%-6.6% range through October. The lower rates buyers were waiting for may not arrive, but opportunity already has. Buyers have more leverage than they’ve had in years. More homes to choose from: New listings were up 2.1% Year-over-Year in May, active inventory was up 2.2% Year-over-Year. Inventory grew for the 2nd straight month in the Midwest and Northeast, where it had been tightest. Midwest inventory: up 8.2% Year-over-Year. Northeast inventory: up 7.1% Year-over-Year. Growth was mostly flat in the South and West. National inventory is still below pre-pandemic levels, but the trend is moving in the right direction. More time to decide: Homes are averaging 52 days on market. May was the 26th month of homes taking longer to sell Year-over-Year. Motivated sellers: Listing prices fell 2.4% Year-over-Year. That's the 7th straight month of annual declines, and the steepest drop since Realtor.com began tracking in 2017. Sellers are pricing realistically from the get-go rather than cutting later. While affordability is a real hurdle for many buyers, rates may not be the barrier buyers perceive them to be. For those who are ready to move, today's market conditions offer something that hasn't been available in years: time, options, and sellers who are motivated to meet them. Bottom line: Buyers don't need to wait for rates. The market is already shifting in their favor.


Sources:

  1. Freddie Mac, Primary Mortgage Market Survey (PMMS).
  2. Realtor.com, “May 2026 Monthly Housing Report: Sellers Are Meeting the Market—and Buyers Are Showing Up,” June 3, 2026.
  3. ICE Mortgage Monitor, June 2026

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