In October, the U.S. housing market saw active inventory rise to 183,500 homes, marking a 7.4% increase year-over-year, the fastest growth in eight months, according to Realtor.com. Despite a decline in new listings by 7.5% compared to October 2025, the overall supply is now only 6.6% below pre-pandemic levels.
Danielle Hale, chief economist at Realtor.com, noted that while buyers are stepping back due to higher mortgage rates, sellers are not significantly increasing delistings or price cuts, with just over 20% of sellers reducing prices in October.
Mortgage rates, although slightly lower month-over-month, remain over a percentage point higher than last year, contributing to a 16.8% drop in newly pending sales year-over-year, the largest decline since August 2023. Zillow reported that the typical monthly mortgage payment rose to $2,004, a 12.8% increase from last year.
Mischa Fisher, Zillow's chief economist, anticipates that November may see an even larger contraction, but suggests that the worst may be behind us, with potential opportunities for buyers if mortgage rates stabilize