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hutterstockHope signals a dimming housing market amid a slowdown in mortgage applications, a dip in pending sales, and lingering economic uncertainty. The 30‑year fixed‑rate mortgage rose to 6.34% on Oct 2, up from 6.30% a week earlier and from 6.12% a year ago, according to Freddie Mac. Mortgage applications fell 12.7% week‑over‑week, largely due to a drop in refinance requests, while the unadjusted purchase index slipped 2% but remains 16% higher than a year ago. Freddie Mac’s survey shows rates likely to stay near 6.3% during the early days of the federal shutdown, but could swing if the shutdown deepens economic worries.
With fewer buyers in the market, those still active can negotiate with sellers who need to act quickly. Redfin’s Oct 2 report notes pending sales fell 1% year‑over‑year in the four weeks to Sept 28, the steepest decline in almost five months. High prices, limited new supply, and economic uncertainty are cited as the main headwinds. Yet buyers now hold more leverage; starter‑home sales are rising, and many homes have seen price cuts—about 20% of listings in September, mostly at lower price points, per Realtor.com. “The market is tilting in favor of buyers, with more inventory, longer days on market, and competitive pricing,” says Realtor.com chief economist Danielle Hale.
The shutdown also delays key economic releases, such as the Oct 3 jobs report, which could affect the Fed’s next rate decision on Oct 28‑29. Selma Hepp, chief economist at Cotality, warns that missing data may cause the Fed to pause, potentially adding volatility. Despite the slowdown, active buyers still have opportunities to secure deals in a market that appears to be settling into a quiet phase.
