Coldwell Banker Realty CEO Kamini Rangappan Lane said rising mortgage rates are weighing on housing activity as consumers react to higher borrowing costs, inflation and economic uncertainty. In a Thursday interview with CNBC's "Squawk on the Street," Lane said rates have climbed in recent months and stand above their levels of a year ago and six months ago, though they remain near 2023 levels, when about 4 million housing units traded, and she expects the market to trend toward a similar figure in 2026. She said housing starts and mortgage applications have been declining, declaring that "we are definitely in a soft period right now," with the average 30-year fixed mortgage rate reaching 7.12% for the week ending Sept. 18, total mortgage applications falling 1.5% and purchase applications declining 0.8%. Lane said more mortgages are now above 6% than below 3%, compared with the rates many homeowners secured during the COVID-19 period, and that some owners are still willing to move because they need to relocate or have found a home to buy, which can bring additional properties onto the market. Compass CEO Robert Reffkin recently said 42% of homes on the market had price cuts in September while national housing supply was up 4%, and Lane said, "Inventory is the problem right now."
Compass IncCompass CEO Reffkin cited 42% of homes with price cuts in September and rising supply, signaling weak housing demand conditions for the brokerage.
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