Coldwell Banker Realty CEO Kamini Rangappan Lane said rising mortgage rates are affecting housing activity as consumers respond to higher borrowing costs, inflation, and economic uncertainty.
In an interview with CNBC’s "Squawk on the Street" on Thursday, Lane said mortgage rates have climbed in recent months and are higher than they were a year ago and six months ago. However, she noted that rates are around levels seen in 2023, when about 4 million housing units traded, and said the market is trending toward a similar figure in 2026.
Coldwell Banker Real Estate is a subsidiary of Compass International Holdings, following Compass, Inc.’s (NYSE: COMP) acquisition of Anywhere Real Estate in January. Coldwell Banker operates a network of residential real estate brokerages and professionals.
Mortgage Pressure
Lane said housing starts and mortgage applications have been declining and noted that “we are definitely in a soft period right now.” She said consumers are reacting to inflation, the news cycle, and higher mortgage rates.
The average 30-year fixed mortgage rate reached 7.12% for the week ending Sept. 18, while total mortgage applications fell 1.5% and purchase applications declined 0.8%.
Lane said the fall housing market remains unclear and will depend on broader economic factors. She also said geopolitical uncertainty is translating into affordability concerns.
Inventory Challenge
Lane said more mortgages are now above 6% than below 3%, compared with the mortgage rates many homeowners secured during the COVID-19 period.
She said some homeowners are still willing to move because they need to relocate or have found a home they want to purchase. That can bring additional properties onto the market, she said.
Compass CEO Robert Reffkin recently said 42% of homes on the market had price cuts in September, while national housing supply was up 4%.
Lane said, "Inventory is the problem right now."
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