US Pending Home Sales Rise to Six-Week High

Redfin reported that seasonally adjusted US pending home sales rose 1.3% week-over-week during the four weeks ending July 5, reaching their highest level since the first half of May.

Redfin attributed the increase partly to a temporary decline in mortgage rates. The weekly average rate fell to 6.43% on July 2, its lowest level in six weeks, while the median monthly housing payment declined to $2,598. The daily average mortgage rate subsequently rose to 6.68% on July 8.

The median home-sale price increased 2.2% year-over-year to $408,808—about $500 below the all-time high. New listings fell 2.5% week-over-week to their lowest level since January.

Redfin Head of Economic Research Chen Zhao said:

“The housing market is kicking off the summer by showing a bit of resilience. While near-record prices and a lack of new listings are keeping many would-be buyers on the sidelines, there are enough house hunters hitting the pavement to push pending sales up. If that trend continues, we may get more fresh listings from sellers hoping to take advantage of demand and high prices.”