Your Money Minute Another Record High For Home Prices 8/4/25
Aug 4, 2025
Home prices are hitting record highs, yet existing home sales have dipped by 2.7%. The rising mortgage rates are making it tougher for buyers to enter the market. Explore how lower past interest rates continue to influence the current housing landscape. It’s a confusing time for both sellers and potential buyers!
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Home Prices Reach New Highs
- Home sales dropped 2.7% in June despite June usually being strong for sales.
- Prices hit a record median of $435,300, showing 24 straight months of annual increases.
Mortgage Rates Impact Demand
- June home sales reflect contracts signed during high mortgage rates near 7%.
- Buyers recall rare 2-4% pandemic rates, making current high prices and rates unaffordable.
Mortgage Rates Still Historically High
- Current 30-year mortgage rates hover around 6.8%, below the historical average near 8%.
- Despite this, today's buyers find rates comparatively high compared to the pandemic period.