Monday, August 3, 2026
Redfin: Homebuying slows as mortgage rates climb to highest level in more than a year
Pending sales fell to their lowest level since early April, while San Diego ranked among the nation's largest year-over-year declines in pending home sales.
Homebuying activity slowed in late July as mortgage rates climbed to their highest level in more than a year, prompting many prospective buyers to delay purchases despite improving negotiating conditions, according to a new report from Redfin.
Pending U.S. home sales fell 1.7% during the four weeks ending July 26 from the previous four-week period, reaching their lowest level since early April. Pending sales were up 1.5% year-over-year, though Redfin said the recent weekly decline signals cooling demand.
Mortgage rates have been a major factor, the report said. The daily average rate reached 6.85% at the end of last week, the highest level in more than a year, as inflation concerns and geopolitical tensions affecting oil prices continued to put upward pressure on borrowing costs. Redfin said economic uncertainty, despite a strong labor market, is also causing many buyers to remain on the sidelines.
Home tours are still increasing but at a slower pace than last year. ShowingTime data cited by Redfin found tours are up 15% since the start of 2026, compared with a 31% increase during the same period in 2025.
Even as demand softens, buyers are seeing some financial relief. The median monthly housing payment declined to $2,575, its lowest level in three months, helped by lower asking prices. The nationwide median asking price for a single-family home, adjusted for seasonal factors, was $392,760, unchanged from a year earlier and the lowest level in a year.
Meanwhile, sellers are becoming more cautious. New listings in the U.S. edged down 0.4% from the previous four-week period to 351,078, the second-lowest level recorded so far this year.
"There are still hundreds of thousands more sellers than buyers in the market," Bonnie Phillips, a Redfin agent in Cleveland, said in a statement. "Buyers are often able to negotiate prices down and get concessions from sellers."
Nationally, the median home sale price rose 2.8% from a year earlier to $407,752, about $2,000 below a record high. Active listings increased 0.7% year-over-year to nearly 1.49 million homes, while the market had 3.6 months of housing supply, below the four to five months generally considered a balanced market.
Homes continued to sell relatively quickly, with a median of 41 days on the market, according to Redfin. About 28% of homes sold above their list price, up slightly from a year ago, while roughly one in five listings saw a price reduction.
Among the nation's largest metropolitan areas, West Palm Beach, Fla., posted the biggest annual increase in median sale price at 12.2%, followed by Newark, N.J., and Detroit. San Jose recorded the largest annual price decline, down 3.3%, according to the report.
Pending sales increased the most in West Palm Beach, Boston, and Pittsburgh, while Houston, Seattle and Phoenix experienced the largest declines. San Diego posted a 7.1% year-over-year drop in pending home sales, ranking among the five largest decreases nationally.
New listings rose fastest in St. Louis and San Jose but declined most sharply in Fort Worth, Texas, Dallas and Miami.
Pending U.S. home sales fell 1.7% during the four weeks ending July 26 from the previous four-week period, reaching their lowest level since early April. Pending sales were up 1.5% year-over-year, though Redfin said the recent weekly decline signals cooling demand.
Mortgage rates have been a major factor, the report said. The daily average rate reached 6.85% at the end of last week, the highest level in more than a year, as inflation concerns and geopolitical tensions affecting oil prices continued to put upward pressure on borrowing costs. Redfin said economic uncertainty, despite a strong labor market, is also causing many buyers to remain on the sidelines.
Home tours are still increasing but at a slower pace than last year. ShowingTime data cited by Redfin found tours are up 15% since the start of 2026, compared with a 31% increase during the same period in 2025.
Even as demand softens, buyers are seeing some financial relief. The median monthly housing payment declined to $2,575, its lowest level in three months, helped by lower asking prices. The nationwide median asking price for a single-family home, adjusted for seasonal factors, was $392,760, unchanged from a year earlier and the lowest level in a year.
Meanwhile, sellers are becoming more cautious. New listings in the U.S. edged down 0.4% from the previous four-week period to 351,078, the second-lowest level recorded so far this year.
"There are still hundreds of thousands more sellers than buyers in the market," Bonnie Phillips, a Redfin agent in Cleveland, said in a statement. "Buyers are often able to negotiate prices down and get concessions from sellers."
Nationally, the median home sale price rose 2.8% from a year earlier to $407,752, about $2,000 below a record high. Active listings increased 0.7% year-over-year to nearly 1.49 million homes, while the market had 3.6 months of housing supply, below the four to five months generally considered a balanced market.
Homes continued to sell relatively quickly, with a median of 41 days on the market, according to Redfin. About 28% of homes sold above their list price, up slightly from a year ago, while roughly one in five listings saw a price reduction.
Among the nation's largest metropolitan areas, West Palm Beach, Fla., posted the biggest annual increase in median sale price at 12.2%, followed by Newark, N.J., and Detroit. San Jose recorded the largest annual price decline, down 3.3%, according to the report.
Pending sales increased the most in West Palm Beach, Boston, and Pittsburgh, while Houston, Seattle and Phoenix experienced the largest declines. San Diego posted a 7.1% year-over-year drop in pending home sales, ranking among the five largest decreases nationally.
New listings rose fastest in St. Louis and San Jose but declined most sharply in Fort Worth, Texas, Dallas and Miami.
