Mortgage rates

Institutional investors are buying up houses to use as rental properties - and renting them to people who can't afford to buy a starter home right now.

The reasons may vary, but one factor: rising mortgage rate.

Prices may be coming down and houses are on the market longer, but many potential buyers have given up.

The Mortgage Bankers Association reports the average monthly payment on a new mortgage in July was $1,844, down $49 from June, as mortgage rates and loan amounts edged lower.

Higher home prices and the Federal Reserve's efforts to curb inflation are responsible for much of the slowing market.

In some markets, sellers can no longer bet on multiple offers and quick deals, and buyers can afford to be pickier.

Mortgage rates have fallen by half a percent over the last two weeks, according to Freddie Mac. One reason? Demand for homes has been slowing.

For buyers, the competition is less fierce, but some sellers still have "pie in the sky" hopes.

The number of pending sales is down from last year, but homes are still selling quickly.

Mortgage rates are up. Realtors are being laid off.