08/03/2026
Curious why the housing market feels a little upside down right now?
According to ABA economist Daniel Brown, we're in a strange moment: the median price of a new home is actually lower than the median price of an existing home — a reversal of the usual trend. 📉
Why? Builders are offering concessions to move inventory, while current homeowners are holding onto their low mortgage rates and staying put. It's part of what's known as the "lock-in effect."
📊 A few key takeaways:
Mortgage rates are closely tied to the 10-year Treasury yield
Inflation concerns have pushed rates higher this year
Builder incentives are reshaping new vs. existing home pricing
Understanding these shifts helps buyers, sellers, and agents make smarter moves, and that's exactly what we're here for.