Middle East conflict and high mortgage rates push home sellers to accept losses

Brent Wachter accepted $620,000 for his Albuquerque home this week — $69,000 below his asking price. The Air Force servicemember listed the property in November for $689,000, just above what he paid in 2023. With a May overseas assignment upending his long-term housing plans, Wachter said he would have been content to break even on the sale. "If we walk away with zero, we’re fine," he said. The transaction reflects the broader strain on the spring housing market as the war in the Middle East has driven up borrowing costs and economic uncertainty. Existing home sales fell to a nine-month low in March, according to the National Association of Realtors. The average 30-year mortgage rate rose to 6.30% in early April, up from 5.98% three weeks earlier, according to Freddie Mac. The rate has eased slightly from a recent peak of 6.46% earlier this month as markets have steadied.