Mortgage rates curb home sales in Detroit metro

Home sales were down almost 18% year over year in metro Detroit, per RE/MAX's February report.

Why it matters: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market, but people can’t afford them.

What's happening: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, according to Freddie Mac.

By the numbers: Metro Detroit's home inventory is up 33% from the same month last year, RE/MAX found.

• Houses are also staying on the market a longer time — an average of 38 days, up from 29 days in February 2022.
• But they're still pricey, at a median of $225,000, which is 2% more than last year.

Zoom out: Because there's less competition right now, buyers don't have to front as much cash as they did a year ago, Axios' Emily Peck reports.

Between the lines: Buyers who can afford these mortgage rates have more power.

• They have more options than a year ago, they can take their time searching and they can make offers that aren’t wildly above list price.

Yes, but: These rates make buying unaffordable for many.

What's next: Mortgage rates dropped nearly a quarter point last month, which means buyer activity will likely pick back up.