Housing market trends favor home shoppers, but Iran war clouds the outlook for mortgage rates

The US housing market is favoring home shoppers, with lower listing prices and more homes on the market. However, the conflict with Iran is driving up mortgage rates, which could put a damper on home sales. Mortgage rates have risen to 6.46%, their highest level in nearly seven months. Despite this, home shoppers who can afford to buy at current rates are likely to have more leverage when negotiating with sellers. Many sellers are offering incentives to land a buyer, such as lowering their initial asking price or offering money for closing costs. The trends are varying across the US, with the West, Midwest, and South far outpacing the Northeast in terms of available homes.