H
ome sales in the US's most expensive markets are gaining momentum as mortgage rates trend downward. Seattle and Silicon Valley have seen an increase in homes listed for sale, with Realtor.com data showing a 4.2% rise in new listings in September, the largest annual jump since the spring homebuying season. Active listings were 34% higher than last year, driven largely by priciest markets like metropolitan areas around Seattle, San Jose, and Washington D.C.

    The drop in mortgage rates is attributed to the Federal Reserve's interest rate cut last month, which brought the benchmark rate down from a 23-year high of 5.25%. While the Fed doesn't directly control mortgage rates, economists expect them to cool further in coming months, leading to more property listings. Realtor.com chief economist Danielle Hale notes that sellers have been waiting for market conditions to change, and with mortgage rates at their lowest levels in two years, there are signs of movement.

    The median US home sale price is near record highs, partly due to low supply, reaching an all-time high of $426,900 in June. Hale predicts the average 30-year home loan rate will remain around 6% until year-end, lower than last year's 23-year high of 7.79%.