Fortune: Homeowners Sitting on a Record Amount of Equity.

Home prices are significantly higher than before the pandemic, driven by buyers using record amounts of equity. Realtor.com’s chief economist, Danielle Hale, highlights that buyers not affected by current mortgage rates are opting for more expensive homes. This trend is also evident among sellers, particularly baby boomers unaffected by high mortgage rates. Here’s what else the Fortune article reports:

• Baby boomers: 17% are free of the lock-in effect

• Mortgage rates: Averaging 7.14% daily, 6.86% weekly.

• Market shift: Increase in lower-priced home inventory

• Future outlook: Potential for mortgage rate drops may stabilize or further shift prices depending on market dynamics.

Ralph’s Take

There is hope for first-time buyers as inventory of lower-priced homes is increasing nationally. Home prices are rising at their slowest pace in almost a year, showing signs of plateauing. A potential drop in mortgage rates could stimulate both buyer and seller activity, with significant market changes depending on which group returns more intensely.