Mortgage rates and home prices have overtaken broader economic concerns as the biggest worries for U.S. home buyers, even as the housing market continues shifting toward a more balanced environment, according to CNBC’s second-quarter Housing Market Survey released Tuesday.
Discussing the findings on CNBC‘s “Closing Bell: Overtime”, senior real estate correspondent Diana Olick said buyers are regaining negotiating power after years of seller dominance as more homes stay on the market and inventory gradually improves.
The survey found that 44% of real estate agents now view the market as balanced between buyers and sellers, up from 30% in the third quarter of 2025. Existing home sales in May also rose 3% from a year earlier as supply increased and asking prices eased, according to the National Association of Realtors.
Buyers Gain Leverage
Despite the improving balance, affordability remains the biggest obstacle for prospective buyers.
Olick said 37% of agents identified mortgage rates as buyers’ primary concern during the second quarter, up from 33% in the first quarter and 26% at the end of last year. Home prices also ranked among buyers’ biggest concerns, while worries about the broader economy and the Iran conflict have eased.
She added that homes are spending more time on the market, allowing buyers to negotiate, compare properties and include contingencies that were often waived during the pandemic housing boom. The increase in available inventory is being driven largely by existing homeowners listing properties and homes taking longer to sell, rather than a surge in new construction.
Affordability Pressures Persist
The findings add to growing evidence that the U.S. housing market is gradually rebalancing after years of seller dominance.
Last month, data highlighted by The Kobeissi Letter showed a record 46% of home sellers offered concessions to buyers in May as elevated mortgage rates and softer demand reshaped market conditions. Despite the shift, affordability remains a challenge, with mortgage rates and home prices continuing to weigh on prospective buyers.
At the same time, housing affordability remains a national challenge. A recent Federal Reserve Bank of Dallas working paper associated the recent surge in unauthorized immigration with higher home prices and rents, though the researchers emphasized the paper is preliminary and does not represent the official views of the Federal Reserve System.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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