\nPending home sales fell 1% year over year, the biggest decline in a month, according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket. On the selling side, new listings inched up 0.3% year over year.<\/p>\n
\nHouse hunters are wary partly because of rising mortgage rates and economic uncertainty. The weekly average mortgage rate has hit a three-month high of 6.22% as the Iran war<\/a> and jitters about inflation rattle markets<\/a>. The daily average mortgage rate rose as high as 6.55% on Tuesday.<\/p>\n \nMarkets are bouncing around this week as investors try to keep up with conflicting messages about the conflict in the Middle East; stocks and bonds rallied on Monday after the White House said the U.S. and Iran had productive conversations, but it is unclear when the conflict will end.<\/p>\n \nRising mortgage rates, along with a 1.8% year-over-year increase in U.S. home-sale prices, have driven the median monthly housing payment to $2,695\u2014the highest level since June (housing payments are seasonal; they typically peak in late spring or early summer). The median payment is down 1.5% compared to a year ago, the smallest decline in five months. Redfin agents say some would-be buyers are holding off as costs stay high.<\/p>\n \n\u201cIn Boston, where a mortgage payment can be $10,000 per month, small changes in rates make a big difference,\u201d said Aditi Jain<\/a>, a Redfin Premier<\/a> agent in Boston<\/a>. \u201cMany buyers are waiting, hoping interest rates dip below 6% for a meaningful amount of time, before jumping into the market. The buyers who need to move now\u2014maybe they\u2019re expecting a baby or relocating for a job\u2014are moving forward, but they may opt for a smaller home or a condo instead of a single-family house to keep their monthly payment in budget.\u201d<\/p>\n \nA separate Redfin report<\/a> shows there are hundreds of thousands more home sellers than buyers in the market overall, giving house hunters negotiating power.<\/p>\n \nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.<\/p>\n Leading indicators<\/b><\/p>\n