08/13/2026
Interest rates are up, and so are active listings. Did one cause the other? Not necessarily. There may be a relationship, but there are several factors at work.
First: Spring and summer are typically the time of year when we see more homes come onto the market. So some of the increase in active listings is likely seasonal.
Second: Higher interest rates can affect what buyers can afford. For example, the difference between a 6.1% and 6.6% interest rate on a $500K home with 5% down is roughly $155 per month in principal and interest.
For buyers who are shopping based on a monthly payment ceiling, that half-percentage-point increase can make a meaningful difference. With a $2,880 monthly principal-and-interest budget, the buyer's purchasing power has dropped by about $25K (from roughly $500K to $475K) between March and now. Even a relatively small change in rates can affect the price range some buyers can comfortably consider.
Third: The higher the price, the smaller the pool of buyers who can afford the home—regardless of where interest rates are. And there are a lot of higher-priced homes on the market right now. The median list price among today's active listings is $872,350, and 192 listings are priced above $1 million.
That's why we sholdn't confuse correlation with causation. Understanding our real estate market requires looking at the whole picture.
If you have questions about the market, give me a call! I love sharing my years of boots-on-the-ground experience.