Market Update · August 27, 2026 · 6 min read
Mortgage rates ticked down slightly this week. Freddie Mac's latest survey has the 30-year fixed at 6.66% as of August 27, 2026. That's still high enough to make most buyers pause, but the real story isn't the rate—it's what's happening with inventory.
Redfin reported that new listings rose 0.4% during the four weeks ending August 23, hitting their highest level since April. At the same time, fewer buyers are actually pulling the trigger.
That's a shift. A real one.
When I sit down with clients in Harford or Baltimore County these days, they're noticing it too. More signs going up. Homes sitting a little longer. Sellers who three months ago wouldn't budge on price are suddenly open to conversation.
Let me tell you what I'm seeing at open houses in Cecil and Anne Arundel Counties. Traffic is lighter. The frantic energy from spring—gone. People are walking through slowly, taking notes, asking about mechanicals and roof age instead of just trying to be the fastest offer in the door.
One buyer I worked with in Howard County last week told me she walked away from a house because the sellers wouldn't negotiate on a $4,000 septic repair. Six months ago? She would have written that check and said thank you. Now she's got three other listings to consider, and sellers know it.
Inventory doesn't just mean more choices. It means leverage.
The HousingWire piece on builder inventory caught my attention too—completed new-home inventory is climbing to 9.6 months of supply. Builders are sitting on finished product they can't move, which means they're more willing to offer concessions, rate buydowns, even paying closing costs. I've seen this movie before, back when I was still teaching leadership seminars instead of showing houses. When supply outpaces demand, the math changes fast.
Here's something that might sound alarming at first: Redfin also found that 14% of U.S. homebuying deals fell through in July, the highest share since November 2023.
But let's unpack that. Cancellations are highest in buyer-friendly southern markets where inventory is piling up and buyers can afford to walk away. They're not desperate anymore. They're doing their homework, getting inspections, and backing out if the numbers don't work or the seller won't negotiate.
That's not chaos. That's a functioning market returning to normal.
If you're a Maryland buyer who's been sitting on the sidelines, this is important: you have room to ask questions now. You can request that the seller fix the HVAC issue. You can negotiate on price if the appraisal comes in low. You can even walk away and try again next month without feeling like you've lost your last shot. I wrote about what to watch for in Maryland home inspections earlier this week—those due diligence periods matter more than ever when you actually have options.
If you're thinking about listing, I'm not going to sugarcoat it. You're not in the spring 2024 seller's market anymore. Homes aren't moving in 48 hours with six over-ask offers.
But that doesn't mean you can't sell. It means you need to be strategic.
Price matters. A lot. Overpricing by even 3-5% can mean your house sits for weeks while buyers tour fresher listings. I've seen sellers in Charles County drop their price twice in a month because they tested the market too high to start.
Condition matters too. Buyers have time now to compare your kitchen to the one down the street. If your house needs paint or the carpets are worn, they'll notice—and they'll either ask you to fix it or they'll move on. Small investments in staging and repair pay off when inventory is climbing. (If you need a refresher on what actually moves the needle, I covered some of this in my post on what Home Depot's remodeling slowdown signals.)
Timing matters. Redfin's analysis found that mid-September is the prime window for buyers in Baltimore to score a deal. If you're planning to list in the next few weeks, understand that buyers know this too. They're waiting for you to get a little more motivated.
There's noise in the background that's shaping all of this. Foreclosure filings rose 10% year-over-year in July, according to ATTOM. That's not a crisis, but it's a data point. Some homeowners who stretched to buy in 2021 or 2022 are feeling the squeeze now with higher rates and tighter budgets.
We're also seeing the Fed hold rates steady while three policymakers pushed for a hike at the last meeting, per Zillow's breakdown. Chair Warsh is speaking Friday at Jackson Hole, and the bond market is holding its breath. If inflation stays stubborn or geopolitics heats up again, rates aren't coming down fast—and that means the current window of rising inventory and softer demand could be the best opportunity buyers get for a while.
For context, the 30-year Treasury yield hit a 19-year high recently before retreating, as Zillow noted. Mortgage rates track Treasuries, and while they've eased slightly, the structural forces—deficits, oil shocks—aren't going away.
York and Lancaster Counties in Pennsylvania are seeing the same dynamics. Inventory is up. Buyers are more cautious. Sellers who were used to multiple offers are adjusting expectations.
In New Castle County, Delaware, I'm watching how the rising rents and demographic shifts are playing out. More rental supply is hitting the market as older homeowners stay put or shift to assisted living, which is easing some rent pressure but also creating opportunities for first-time buyers who were previously priced out.
The lesson across all three states? If you've been waiting for the market to give you some breathing room, it just did.
If you're a buyer, don't wait for rates to hit some magic number. A recent survey found that 72% of potential buyers have delayed or paused their search until rates improve. Here's the thing: if everyone's waiting for 5%, and rates eventually hit 5%, you'll be competing with all those sidelined buyers again. Inventory will tighten. Prices will climb.
Buy when you have leverage. That's now.
If you're a seller, price it right from day one. Work with a realtor who knows your county and can pull real comps, not Zillow estimates. Make the small fixes that signal care. And be ready to negotiate, because buyers today have done their homework and they know what else is out there.
You can browse current listings here or reach out directly if you want to talk through your specific situation in Harford, Cecil, Baltimore, Montgomery, Howard, Anne Arundel, Charles, Prince George's, DC, York, Lancaster, or New Castle County. I've been doing this long enough to know that the best decisions aren't made in a panic or in a vacuum—they're made with good information and a clear head.
The market is shifting. Not collapsing, not booming—just shifting back toward something that feels more like balance. And for buyers who've been waiting, that's very good news.
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