The US housing market, which has long suffered from a lack of inventory, is now seeing an increase in listings. However, buyers are not showing up in many areas, as higher mortgage rates are dampening demand during the prime season for real estate.

Sellers are facing challenges as more of them are reducing asking prices due to growing inventory stagnation, as reported by Redfin Corp.

With mortgage rates surpassing 7%, homebuyers’ willingness to enter the market this season has decreased, according to Ralph McLaughlin, a senior economist at Realtor.com.

The absence of anticipated rate cuts by the Federal Reserve has led to a sobering reality for the housing market, according to Robert Frick, corporate economist for Navy Federal Credit Union, Bloomberg reported.

Despite high borrowing costs, buyers are experiencing minimal relief, as the average rate on a 30-year mortgage has remained around 7% since mid-April.

Additionally, prices continue to rise, with the median sale price reaching a record $390,613 by the end of May, up 4.3% from the previous year, according to Redfin.

Written by B.C. Begley