Rising mortgage rates and home values continue to dampen the U.S. housing market, forcing a shift toward rentals as sales volume trends downward heading into the fall.
Zillow's report indicates declining home sales and elevated mortgage rates, which could reduce real estate platform activity.
Zillow's August market report reveals a 0.6 percent year-over-year decline in home sales as elevated mortgage rates and rising home values squeeze affordability. With the typical monthly mortgage payment climbing to $1,897, potential buyers are increasingly opting for the rental market, which saw a 2.5 percent increase in typical rent costs.
Zillow attributes the decline to elevated mortgage rates, which have increased the cost of borrowing and pushed monthly mortgage payments higher, making homeownership less affordable.