The number of houses for sale might not seem like a big deal—but it has a huge impact on home prices. When there’s more inventory on the market, buyers have options, and that helps bring prices down. But when inventory is low, competition heats up and prices often rise.

A mortgage is a loan to buy a house, and it comes with interest—the cost of borrowing money. When rates go up, your monthly payments go up too, and you’ll end up paying way more over time. When rates drop, borrowing gets cheaper.

You should always keep your mortgage payment at or below 25% of your take-home pay on a 15-year fixed-rate conventional loan with a solid down payment. That’s how you own your home—without it owning you.

Buying or selling your home is one of the biggest financial decisions you’ll ever make—and price matters. To get the best deal or the most offers, you need to understand what’s happening in your local market. Here’s how home prices typically work: When there are more homes for sale than buyers, prices usually drop. But when more people are looking to buy than there are homes available, prices go up.

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.