NAR News & Analysis
3 articles
Market Mood
Homebuyer Income Requirement Climbs to $109,152 by June 2023
The household income needed for a mortgage on a median-priced single-family home increased from $93,552 in January to $109,152 in June 2023, a rise of $15,600. Signed contracts for existing homes decreased by 5.4% in June, marking the largest drop this year. The median home price reached $446,400, while the average 30-year fixed mortgage rate fell slightly from 6.82% to 6.49% year-over-year. This declining affordability, coupled with low builder confidence, indicates challenges for homebuyers and could impact overall housing market activity.
Read More: Homebuyer Income Requirement Climbs to $109,152 by June 2023
Home Selling Commission Amid NAR Ruling: Will Costs Decrease?
Recent changes by the National Association of Realtors (NAR) have decoupled buyer's and seller's agent commissions, which may affect home sale commissions. The customarily charged commission rate has been around 6%, raising questions about potential reductions in fees. If agents begin to charge less than the standard 6%, this could influence market dynamics and homeowner decisions regarding real estate transactions. Monitoring these changes will be important for home sellers and buyers navigating the current housing market conditions.
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Home Sales Forecast Cut to 4% Amid High Mortgage Rates
The National Association of Realtors reports a revised forecast for existing home sales in 2026, now expected to increase by only 4%, down from a previous estimate of 14%. This reduction is attributed to anticipated mortgage rates remaining above 6.5% in the coming months. Home sales fell to a nine-month low, indicating reduced activity in the market. The previous forecast was based on an average mortgage rate of 6%, highlighting significant shifts in market conditions that may affect buyers and sellers.
Read More: Home Sales Forecast Cut to 4% Amid High Mortgage Rates