After more than a year of deteriorated affordability that’s priced out so many would-be buyers, their luck could be reversing as more and more cracks are visibly forming within the housing market. Mortgage rates have dropped from just above 8% to 7.41%, the share of sellers dropping prices is at a record high, and there's an "unseasonal uptick in the total number of homes for sale, which is at its highest level since the start of the year," according to a report from Redfin. Mortgage rate purchase applications, which have been on a steady decline, are even up 3% week-over-week on the news.
What’s behind the cracks? For one, nearly 7% of home sellers dropped their asking price in the four weeks ending Nov. 5, which is the highest share on record (tied with the four weeks ending Oct. 29), according to Redfin. In an average month, 3.6% of homes lower their prices.
