Home listing prices are in decline nationwide as would-be homebuyers are struggling to afford soaring housing costs.

In April, 6.4% of sellers cut their asking price—the highest share of cuts since November 2022. These cuts translated to a median asking price drop of $3,000 to $416,623 in the last week—the first decline in the last six months.

Despite falling asking price, the median-home sale price is still 4.3% higher compared to 2023’s peak prices.

“The market is slower than usual, but well-maintained properties listed for under a million dollars still get multiple offers,” said Christine Chang, a Redfin agent in the Bay Area of California.

Outside of California, the market for homes priced under a million dollars is starting to sag, as the for-sale supply has grown more stale by the day. In May, inventory rose to 46 days in May—the first rise in more than eight months.

Inventory represents the number of days active listings stay on the market.

“The housing market is an incredibly unaffordable place right now,” said Daryl Fairweather, chief economist at Redfin. “People who are succeeding are coming in with a lot of cash and large down payments — and often, family support.”

That said, Buyers did see a small reprieve in monthly housing payments, with the average payment dropping to a six-week low of $2,812 last month.

Unstable rates impacting buyers

Since the pandemic, record-high mortgage rates have kept many would-be homebuyers on the sideline.

“The biggest thing when we’re looking at mortgage rates right now is volatility,” said Nicole Bachaud, a senior economist at Zillow. Bachaud added that the volatility of mortgage rates is “really the thing that’s going to impact the housing market the most.”

The Fed keeps a close eye on mortgage rates as it fights long-standing inflation that’s still hovering way above its target. At its last meeting, the central bank left rates unchanged and may keep them that way for a while longer, according to analysts.

“We may be getting closer to the first interest rate cut, but it sure doesn’t feel that way,” said Greg McBride, chief financial analyst at Bankrate. “The Federal Reserve needs to see continued improvement in the inflation readings to be confident that it is on track for the target of 2 percent.”

In today’s market, buying a $500,000 home on a 30-year fixed mortgage costs around $3,300 a month—an increase of 59% a month over the same amount when rates were at historic lows in 2021.

Some analysts are predicting a drop in mortgage rates to 5.75% by the end of the year—a welcome sign as buyers look for more affordable housing options.