Pending home sales fell 1.3 percent week-over-week to their lowest level in three months during the four weeks ending July 19, according to a report from Redfin.
The decline in homebuying demand comes as weekly average mortgage rates rise to an 11-month high of 6.55 percent. Additionally, home prices remain high, sitting just about $900 shy of their all-time peak. The topsy turvy U.S. economy, including the resurgence of the Iran war and rising oil prices, is another factor driving would-be homebuyers to the sidelines.
“The buyers who are in the market have more leverage than they’ve had in years,” Vanessa Leimback, a Redfin Premier agent in Seattle, said in a release. “Homes that have been sitting on the market for longer than a few weeks often come with room to negotiate on price and seller concessions. But buyers should remember that desirable, move-in ready homes can still be competitive because many people don’t want to take on renovation costs while mortgage payments are high. That’s why the biggest bargains are often on fixer-uppers.”
On the selling side, new listings ticked up 0.4 percent week-over week, though they are still at their second-lowest level since the start of 2026. Some would-be sellers are holding out, waiting for demand to improve.