Read more of RSM’s insights on real estate and the middle market. Because of elevated borrowing costs, there were more all-cash buyers last month than the previous five months, reaching 29%. A year ago, the figure was 22%. Looking ahead, even if the short-term interest rates stay at the same level, the Federal Reserve will not stop its quantitative tightening, or reducing its balance sheet, anytime soon. That should keep the long-term interest rates high for quite some time, dampening demand for existing homes. Buyers, as a result, have been looking for opportunities from the new home market, where supply has been more solid. That said, we should not expect any material improvement from housing sales until mortgage rates stabilize. Buyers are most likely pulling back, waiting to spend when rate cuts begin, which won’t be until the middle of next year at the earliest.