Higher rates do not necessarily mean slower economic activity. In fact, as rates and inflation have cooled, more buyers who were constantly outbid the last two years are now able to more easily afford a home today at 6% with an FHA loan because now their offers can compete. No more offers with huge down payments and going tens of thousands over ask, this market is a level playing field that is actually more affordable to them than it was last year and the year prior.

Also, keep in mind that summers are a prominent time for families to purchase homes because it’s the least stressful time of year. Most sports are over, school ends, and vacation time is being cashed in. Without crazy school schedules and homework, practice and games, etc, parents divert that time to finding what will work for their growing family that might be growing with teenagers, new additions, wanting a bigger yard, needing safer neighborhoods, etc.

For other buyers the summer months are just more enjoyable to house hunt because the weather is beautiful and the big patio and pool deck they’ve been wanting for years is now affordable to them and prime time to enjoy. Millions are still needing to make life changes that will involve different real estate, or first time purchases, and thus means great competition for sellers to make a higher return on their sale. I’m even selling my own home this month!