Inventory is a big deal in the housing market because it directly impacts home prices. Plus, it’s a way to gauge home affordability and where the market is headed. When there are more homes for sale, buyers have more options, which can help bring prices down. But when inventory is low, competition heats up and prices often rise.

Mortgage rates affect how much it costs to borrow money for a house. When rates go up, home loans and buying get more expensive because you’ll pay more in interest on monthly payments. When rates drop, borrowing gets cheaper and you’ll save on interest.

When it comes to home prices, it all boils down to supply (homes on the market) and demand (buyers in the market). Home prices usually go down when there are more properties for sale than buyers. And they rise when there are more buyers than there are homes for sale.

How fast homes sell shows how competitive the market is. If they’re selling quickly, the market’s hot, and buyers need to act fast to close a home deal. Sellers can also expect a quick sale, often at asking price. But if homes sit longer, buyers may have more leverage to negotiate.