The latest data from Redfin highlights a cooling trend in buyer activity, as the number of homes going under contract fell 3.7% week-over-week. This contraction brings pending sales to their lowest level in more than five months. While the supply of new listings saw a modest 1% increase during the same period, buyer appetite has weakened significantly in the face of persistent rate pressure.
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US Pending Home Sales Hit Five-Month Low as Mortgage Rates Climb
A sharp rise in borrowing costs has triggered the steepest weekly decline in pending home sales since 2022. With the average 30-year fixed mortgage rate reaching 6.82% as of early August, prospective buyers are retreating from the market, stalling the momentum of the summer housing season across the country.
Regional disparities remain pronounced. Markets such as Seattle, Houston, and Phoenix recorded double-digit declines in pending sales, while Newark and West Palm Beach saw continued price growth. Despite the overall slowdown, the national median sale price holds at $406,362. With the average mortgage payment now sitting at $2,631, high entry costs continue to dictate the pace of transactions, leaving the market in a precarious state as it nears the end of the summer.
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