Mortgage rates and rising prices are keeping homebuyers and sellers from inking more real estate deals, the CEO of a New York City brokerage said last week.
Sellers should know "we are in a competitive but not frenzied market," Ryan Serhant, founder of the eponymous real estate brokerage, said in a market report released on June 30.
The number of homes being sold above asking price is declining, and more buyers are negotiating for concessions, he said.
"This means that sellers may have to get creative with concessions to get deals over the line," said Serhant, a former cast member of Bravo's "Million Dollar Listing New York." "Even with concessions, many homes are selling for record highs."
Serhant's comments come as the number of homes for sale in the United States is on the rise, prompting some economists to predict a pendulum swing toward buyers.
In May 2025, the nation registered the largest number of homes for sale since October 2019, according to Homes.com data. The 1.02 million homes available that month also marked the fifth consecutive month of inventory growth.
But rising inventory will not be enough to motivate buyers, who are in "wait-and-see mode," Serhant said.
Mortgage rates will play a major role in how much homebuying activity happens the rest of the year, economists have said.
Rates and prices need to 'come down' to spur buying
Interest rates on a fixed, 30-year mortgage fell for the fifth straight week, Freddie Mac said last Thursday.
"Declining mortgage rates are encouraging and, while overall affordability challenges remain, we are seeing more sellers enter the market, giving prospective buyers an advantage,” Sam Khater, chief economist for mortgage giant Freddie Mac, said in a statement.
Last week's 6.67% mortgage rate was the lowest since early April, and the dip, from 6.77%, marks the biggest one-week decrease since early March, said Lisa Sturtevant, chief economist at Bright MLS listing platform.
"Despite the fact that rates have dropped for five weeks in a row, recent data suggests homebuyers are still hesitating," Sturtevant said in a statement on July 3.
One reason could be seasonality.
"The kickoff to summer usually means a slowdown in home shopping as some individuals and families are busier with vacations and traveling," she said. "Some buyers are waiting both for rates and prices to come down before they get into the market.”
Serhant called the current mortgage rates "a significant barrier to entry for many buyers. However, as soon as the Fed starts cutting — and mortgage rates follow — we expect a surge of buyers to enter the market and make it even more competitive."