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Published: Oct 12, 2022 4 min read
Aerial View Above Austin Texas Suburb Summer Homes
Austin, Texas

Home prices in some major metro areas are falling, and falling fast, after more than two years of unparalleled growth.

According to the real estate listings site, median list prices for homes have fallen up to 10% from their June highs in many big cities — including some of the pandemic's hottest markets, like Austin and Phoenix.

It’s not just the usual summer-to-fall seasonal decline causing the housing market to cool. Increased mortgage rates are the main culprit behind the drop in prices. The average 30-year fixed-rate mortgage for the United States is now hovering around 7%, up from 3.2% in January, dramatically increasing monthly payments for buyers and sometimes disqualifying aspiring homeowners from being able to afford houses.