H
ome affordability remains a pressing issue as prices continue to rise. Experts predict that mortgage rates will not drop significantly anytime soon, hovering around 6.5-7 percent for the third quarter.

    However, a surge in housing inventory is giving buyers more leverage. According to ATTOM data, new-home inventory was over an eight-month supply at the end of April, and existing-home inventory was around four months. This shift towards a buyer's market may lead to price reductions and longer days on market.

    Industry experts forecast that home sales will remain sluggish this quarter, with some predicting a more subdued buying season due to high mortgage rates and elevated home prices. The Mortgage Bankers Association predicts 30-year loan rates will average 6.8 percent in Q3, while Fannie Mae is slightly more optimistic at an average of 6.3 percent.

    Home prices are expected to continue rising, but at a slower pace than previously seen. Nadia Evangelou, NAR senior economist, predicts annual appreciation of around 2 percent nationally, with some regional variation. In areas where inventory is increasing, small price declines may also occur.

    Buyers now have more negotiating power due to the increased inventory, and experts recommend doing proper due diligence and getting preapproved for a mortgage. Sellers, on the other hand, need to price their homes realistically in this changing market, taking into account the elevated mortgage rates and slower sales pace.