LOS ANGELES — Homebuyers in Seattle, Silicon Valley and the nation's other priciest markets are seeing more properties hit the market as mortgage rates finally start trending lower.
The number of newly listed homes for sale climbed 4.2% last month, according to data from Realtor.com. September's jump was the biggest annual increase since the peak of the spring homebuying season, and helped lift active listings 34% from a year earlier, according to Realtor.com.
A dearth of properties for sale is one reason keeping the median U.S. home sale price near record highs. The median U.S. home sale price hit an all-time high in June at $426,900.
Last month, the Federal Reserve announced its first interest rate cut in more than four years and signaled more cuts to come this year and through 2026.
The Fed doesn't set mortgage rates, but its policy pivot cleared a path for mortgage rates to generally go lower. While mortgage rates rose this week economists still expect them to ease in coming months and that could lead to more listings.
''Sellers, especially those who are locked into a low rate, have been waiting for market conditions to change,'' said Danielle Hale, chief economist at Realtor.com. ''Now that we're seeing mortgage rates down to their lowest levels in two years, there are signs of movement, with more sellers putting homes on the market, even in what's typically a real estate shoulder season.''
Lower mortgage rates boost home shoppers' purchasing power. They also can make selling a home more palatable for homeowners with mortgages that have a fixed rate below current prevailing rates.
The most expensive markets in the country drove much of the increase in newly listed homes last month. That includes metropolitan areas around Seattle, San Jose and Washington D.C., Realtor.com found.
