Falling Home Prices Offer a Window as Mortgage Interest Rates Edge Higher

by Joy Dumandan

The spring selling season is seeing increasing inventory and lower home prices, according to the Realtor.com® Weekly Housing Trends report for the week ending March 26.

Those factors combined favors buyers, but they're also facing rising mortgage interest rates.

The average rate on a 30-year fixed home loan surged to 6.38% for the week ending March 26, according to Freddie Mac. That is up 16 basis points from 6.22% the week prior. Overall, rates are lower than the same time in 2025, when mortgage interest rates averaged 6.65%.

Numerous economic factors are adding to rising rates. The war in Iraq, which has rattled financial markets, has led to interest rate volatility shaking consumer confidence.

Realtor.com economists say buyers can "rate-proof" their budgets by using the mortgage affordability calculator. This tool helps assess how potential rate increases may affect monthly payments, so that buyers can plan acccordingly.

Home listing options for buyers

Homebuyers have more options as the number of homes for sale has exceeded 2025 levels, but Realtor.com economists have found that the pace of inventory recovery has slowed. They believe that one reason inventory growth could be slowing is that the pace of sales may be slightly picking up compared with last year.

Overall, inventory is up 7.8% year to date.

It's still not clear whether new listings will continue to rise as we make our way through March. February's monthly numbers were up 2.4%, but the year to date total still remains in the red, with 3.4% fewer new listings than during the same period in 2025.

Keep in mind, new listings is a measure of sellers putting homes up for sale. Economists believe that lower mortgage rates than at the same time last year should encourage more sellers to list, but the recently rising rates hold back some would-be sellers.

Homes for sale are spending a median 59 days on the market—which is five days slower than this time a year ago. Realtor.com economists believe that as the national "Best Time to Sell" week (April 12-18) approaches, more homes are expected to sell quickly as buyers are competing with fewer homes.

The median list price fell 1.9% from the same time last year. This is the 22nd consecutive week of flat or negative price growth year over year.

The price per square foot also dropped compared with the same period last year. It fell -2.5%, which is slightly slower than last week's -2.6% dip.

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