Market Update · August 14, 2026 · 8 min read
Freddie Mac announced this week that the 30-year fixed mortgage rate dropped to 6.67%, down from the recent highs we saw in July. On paper, that's good news. Lower rates should mean more buyers can afford to make a move, more sellers can expect offers, and the whole machine starts humming again.
Except it's not.
Redfin reported that the number of homebuyers in the U.S. market fell to a record low in July—about 967,000 active buyers nationwide. That's nearly half a million fewer than the number of sellers currently trying to move a house. Sellers now outnumber buyers by 51%, just shy of December's all-time high.
I'm seeing it firsthand here in Harford County, Baltimore County, and across into Howard and Anne Arundel. Open houses are quieter. Showings that used to book out in 48 hours now dribble in over a week. And when I talk to pre-approved buyers, the conversation usually ends with some version of, "We're just waiting to see what happens."
So what is happening? And more importantly, what should you do if you're trying to buy or sell a home in Maryland, DC, Pennsylvania, or Delaware right now?
The rate drop is real, but it's not enough to offset everything else weighing on people's minds.
Housing costs are still historically high. Near-record home prices plus a 6.67% mortgage still price out a lot of families. A $400,000 home in Cecil County or York County, PA—not exactly luxury territory—costs about $2,500 a month before taxes and insurance. That's a big monthly nut, especially when groceries, gas, and insurance premiums haven't exactly gone on sale.
Economic uncertainty is nagging at everyone. We've got inflation reports that keep people guessing whether the Fed will hike again or pause. Tech layoffs are rippling out from Seattle and hitting our own backyard—I've had two buyer consultations in the last month where the client mentioned recent restructuring at their company or their spouse's. Redfin's data shows that Seattle and Texas saw some of the sharpest declines in homebuying demand last month, driven in part by layoffs and economic jitters.
The "wait and see" mindset has taken hold. Buyers are wondering if prices will come down. Sellers are wondering if rates will drop further. Everyone's in a staring contest, and nobody wants to blink first. I get it. When you're making a $400,000 or $500,000 decision, you want to feel confident. But markets don't reward the patient as often as people think.
Let me ground this in what I'm tracking across my service area—Maryland (Cecil, Harford, Montgomery, Howard, Anne Arundel, Charles, Baltimore County, and Baltimore City), DC, Prince George's County, York and Lancaster Counties in Pennsylvania, and New Castle County in Delaware.
Redfin also reported that U.S. pending home sales edged up 0.4% week over week during the four weeks ending August 9. That's a small flicker of momentum, but it's still way below where we were a year ago. New listings are up slightly as we roll into the tail end of summer, but not enough to flood the market.
Here's the truth: inventory is still low in desirable pockets. I just listed a home in Bel Air last week, and we had six showings in three days. Meanwhile, a comparable property two towns over in a less connected school district sat for 28 days before the first real offer came in. Location still matters. School districts still matter. Condition still matters.
But across the board, buyers have more negotiating power than they've had in years. Nearly 80% of homes are sitting on the market longer than they did in 2024, according to Redfin's July analysis. If you're a buyer with your financing lined up and you know what you want, this is actually not a bad moment to make a move. You're not competing against twelve other offers. You can ask for repairs. You can negotiate on price, especially if a home's been listed for more than 30 days.
I'm having a lot of tough conversations with sellers right now. People remember 2021 and 2022, when homes sold over asking in a weekend with no inspection contingency. That's not this market.
If you're trying to sell your house in Harford County or Anne Arundel or DC, here's what you need to know:
Price it right the first time. Overpricing to "leave room for negotiation" backfires. Homes that sit get stale. Buyers assume something's wrong. You'll end up chasing the market down with price cuts, which makes you look desperate even if you're not.
Condition matters more now. When buyers have options, they pick the cleanest, most move-in-ready home. You don't need to gut-renovate, but fresh paint, clean carpets, and a decent declutter go a long way. I wrote a whole prep guide for Prince George's County sellers last week, and the advice applies everywhere: make it easy for a buyer to picture their life in your house.
Be flexible on terms. If a buyer asks for a closing cost credit or wants to push closing by two weeks to coordinate their move, consider it. In a market where buyers are scarce, the ones who show up deserve a little accommodation.
I also recommend reading my recent post on what sellers actually net after closing in Maryland. A lot of people are shocked by how much gets eaten up in taxes, transfer fees, and agent commissions. Knowing your realistic bottom line helps you price strategically from day one.
I know it doesn't feel like a good time to buy. Rates are still higher than your neighbor's 2020 refinance. Prices haven't crashed. But here's what I tell every buyer I sit down with: you can't time the market perfectly, and waiting for perfect conditions usually means you miss the window.
Right now, you have leverage. Sellers are motivated. You can negotiate. And if rates drop further next year—which a lot of economists expect if inflation keeps cooling—you can refinance. You're not married to this rate forever.
Zillow forecasts that mortgage rates will fall to around 6.5% by the end of the year, assuming inflation data keeps cooperating and the Fed doesn't panic and hike again. A half-point might not sound like much, but on a $400,000 loan, it's about $120 a month. That's real money.
If you're a first-time buyer in Maryland, DC, or Pennsylvania, start here. Get pre-approved. Understand what you can actually afford, not just what the online calculator says. And be ready to move when the right house shows up, because good inventory still moves fast—it's just the overpriced or rough-condition stuff that's sitting.
This week's Producer Price Index (PPI) came in slightly cooler than expected, which is why we saw mortgage rates tick down. Zillow noted that softer jobs data and cooling inflation gave the Fed some breathing room, reducing the odds of another rate hike in September.
But here's the reality: the Fed's still divided. Three policymakers wanted to hike at the last meeting. The market's still on edge. Any big surprise in the next round of economic data could send rates back up, or it could nudge them lower. Nobody knows for sure, and anyone who tells you they do is either lying or trying to sell you something.
What I do know is that rates in the 6% to 7% range are likely to stick around for a while. This isn't 2020. It's not even 2019. But it's also not 1982, when my parents bought their first house at a 15% rate. Context matters.
The housing market isn't frozen. It's just slow, and selective, and a little bit anxious. Buyers have more power than they've had in years, but they're choosing to wait. Sellers have fewer buyers to work with, which means pricing and presentation matter more than ever.
If you're sitting on the fence about buying or selling a home in Harford, Cecil, Baltimore, Howard, Anne Arundel, Montgomery, Charles, Prince George's, DC, York, Lancaster, or New Castle County, let's talk. I'm not going to sugarcoat the market or pressure you into a decision that doesn't make sense for your family. I spent 20 years in education before I ever got my real estate license, and I still approach this work like a teacher: I want you to understand what's happening, why it's happening, and what your real options are.
You can browse current listings here or reach out directly to start a conversation. No scripts, no hard sell—just honest advice from someone who lives and works in this market every single day.
We're in a weird moment. But weird moments are often the best time to make a smart, strategic move if you know what you're doing and you have the right support. That's what I'm here for.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“Buyers decide in the first eight seconds of seeing a home if they are interested. Get out of the car, walk in the door — sold.” — Barbara Corcoran