US Homebuying Demand Slows as Mortgage Rates Reach One-Year High

On Thursday, Redfin reported that US pending home sales fell to their lowest level since early April during the four weeks ending Sunday, July 26. Pending sales declined 1.7% in the latest week.

Home tours were up 15.0% from the start of the year, according to ShowingTime data, compared with a 31.0% increase at the same point last year.

Redfin economists said homebuying demand was weakening partly because mortgage rates were rising. The daily average rate reached 6.85% at the end of last week, its highest level in more than a year, as inflation concerns and volatile oil prices tied to geopolitical tensions kept rates under pressure.

The median US housing payment fell to $2,575, its lowest level in three months, as sellers’ median asking prices declined to their lowest level in a year. New listings also fell to their second-lowest level since the beginning of 2026.

Redfin said hundreds of thousands more sellers than buyers remained in the market, giving buyers negotiating leverage across most of the country.