M
ortgage rates have continued their upward trend, reaching 6.54% for a 30-year fixed home loan as of October 24, according to Freddie Mac. This marks the fourth consecutive week of rate increases, which has dampened enthusiasm in the market that was previously fueled by near-6% rates in September.

    The rapid rise in mortgage rates has led to increased volatility, despite a strengthening economy. Realtor.com senior economic research analyst Hannah Jones notes that this trend may discourage sellers from listing their homes until rates decrease further.

    Next week's economic data releases could have a significant impact on mortgage rates. The Federal Reserve will release its preferred inflation gauge, the Personal Consumption Expenditures Price Index, and the October jobs report. If the data comes out hotter than anticipated, mortgage rates may increase during election week.

    However, Realtor.com economist Jiayi Xu expects rates to generally move lower in the coming months. Listing prices remain stable, with the median list price holding steady at 0.0% for the week ending October 19 compared to the same time last year.

    Buyers can still save money as the share of listings with price reductions grew to 18.6% in September, a 0.9% increase from the previous year. Sellers continue to adjust prices to encourage home shopper attention. Housing stock was 28.7% higher for the week ending October 19 than the prior year, marking the 50th consecutive week of growth.

    The number of homes for sale has increased, with fresh listings jumping by 4.7% compared to a year ago. However, recent fluctuations in mortgage rates may discourage more sellers from listing their homes until rates decrease further. The pace of home sales has slowed, with houses spending eight days more on the market compared to the same week in 2023.

    For those looking to purchase a home before the end of the year, taking advantage of a slower market, increased inventory, and stable prices could be a smart strategy. Realtor.com's mortgage affordability calculator can help buyers evaluate how rate changes might affect their monthly payments and adjust their expectations accordingly.