As Mortgage Rates Near 7%, Record Delistings Surge 47% — Homeowners Trapped Between Price Cuts And The Waiting Game
A growing number of frustrated sellers are yanking their listings just as climbing borrowing costs threaten to squeeze the housing market even harder.
What Happened: Nationally, 47% more homes came off the market in June than a year earlier, Realtor.com data show, the biggest delisting spike on record. Year‑to‑date withdrawals are up 34%, and active inventory has ballooned 29%, giving buyers little reason to chase pandemic‑era sticker prices.
The glut is translating into longer waits: typical properties now linger nearly three weeks beyond last summer's pace, according to Realtor.com senior economist Jake Krimmel, who spoke to Fortune. Phoenix, Austin and Denver lead the retreat, with Phoenix seeing the nation's highest share of pulled listings and price cuts.
Mortgage pain is compounding the chill. The average 30‑year fixed rate jumped to 6.82% last week, the highest in a month, as Treasury yields tracked tariff‑driven inflation worries, reveals Bankrate. The Mortgage Bankers Association says total loan applications dropped 10% from the prior week, with purchase demand down 12% to its slowest clip since May.
Refinancings, which had briefly revived when rates dipped in June, fell another 7%, erasing most of that bounce. Higher rates, even after two weeks of declines, stalled activity, explains MBA deputy chief economist Joel Kan, adding that jumbo rates now sit below conforming loans as banks hunt for balance‑sheet growth.
Why It Matters: Some owners would rather wait than capitulate. Many sellers are still anchored to pandemic‑era prices even though the market is telling them otherwise, Krimmel said. Analysts warn that the tactic could backfire if borrowing costs stay elevated. Moody's chief economist Mark Zandi on Wednesday flagged mortgage rates stuck near 7% as a "red flare" for further price drops and builder pullbacks.
The latest rise in mortgage rates ended a five‑week decline in rates and follows April's 7.1% spike tied to new trade tariffs, a pattern that has repeatedly cooled buyer traffic. With pundits expecting mortgages to hover between 6% and 7% for the rest of 2025, would‑be sellers face an uneasy choice. Either they cut now, or delist and gamble that the next rate break arrives before their patience and equity runs out.
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