Pending US Home Sales Edge Lower as Buyers Wait for Lower Rates

Pending US home sales slipped 0.3% year-over-year in the four-week period ending November 9, marking the first decline in four months, Redfin reported.

Homes that do sell are taking longer to move. Properties went under contract in a median of 49 days, the longest time for early November since 2019.

Redfin attributed the slowdown in demand to high costs and shifting expectations.

• The average weekly mortgage rate rose to 6.22% after touching a yearly low of 6.17% the prior week, following signals from the Federal Reserve that a December rate cut may not occur.
• The median home-sale price rose 2.4% year-over-year, the largest increase in six months.
• According to a recent Redfin survey, more than 20% of Americans are delaying a major purchase due to the recent government shutdown, and another 15% have canceled one altogether.

On the supply side, conditions remain more stable. New listings rose 3.4% year-over-year, consistent with gains seen in recent weeks.

Redfin agents reported that many buyers are waiting for mortgage rates to fall below 6% before re-entering the market.