12% of home sales had a price drop during the last four weeks

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12% of home sales had a price drop during the last four weeks

But does that mean the game is over? Has increasing mortgage rates killed the market? 

When I entered the market in the late 90's, people were happy to get 8% financing. Now, if housing prices are so high that 5% financing takes most people out of the market, what does that mean for market balance and the future of real estate? 

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"Price drops are still rare, but the fact that they are becoming more frequent is one clear sign that the housing market is cooling," said Daryl Fairweather, Redfin's chief economist.

Realtor.com and Redfin data could be some of the first evidence the housing market is cooling as a rate shock could produce more turmoil in the second half of this year.

BofA economist Alex Lin recently showed clients that housing affordability is at the lowest since 2007, about a year before the housing bubble imploded.