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Pending home sales drop as mortgage rates hit a year high

Pending home sales fell 1.7% in the week to July 26, while the average daily mortgage rate rose to 6.85%, its highest level in over a year.

Reported · Written up by our desk · Residential

Redfin News reports that U.S. pending home sales slipped to the lowest level since early April in the four weeks ending July 26, falling 1.7% in the last week alone.

The outlet attributes the cooling demand to higher borrowing costs, saying the daily average mortgage rate rose to 6.85% at the end of last week, with little near-term relief as rates remain pressured by inflation concerns and volatile oil prices tied to geopolitical tensions.

Redfin News also points to improving activity for buyers, noting that home listing tours are up 15% since the start of the year, compared with a 31% increase at this time last year.

Even as house hunters pause, the report says the median U.S. housing payment fell to $2,575, its lowest level in three months, as sellers’ median asking prices dropped to their lowest level in a year, and the market still has hundreds of thousands more sellers than buyers, giving buyers negotiating leverage in most areas.

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