\nU.S. pending home sales fell to their lowest level since early April during the four weeks ending July 26, dropping 1.7% in the last week alone. That\u2019s according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p>\n
\nTours of home listings are up 15% since the start of the year, compared with a 31% increase at this time last year, according to data from ShowingTime.<\/p>\n
\nHomebuying demand is declining partly because mortgage rates are rising: The daily average rate rose to 6.85% at the end of last week, the highest level in over a year\u2014and there\u2019s little relief<\/a> on the horizon. Rates remain under pressure due largely to inflation concerns and volatile oil prices tied to geopolitical tensions. Although the labor market remains strong, the combination of high borrowing costs and widespread economic uncertainty is prompting many house hunters to press pause.<\/p>\n \nThere are a few bright spots for the buyers who are in the market. Despite stubbornly high rates, the median U.S. housing payment fell to $2,575\u2014its lowest level in three months\u2014because sellers\u2019 median asking prices dropped to their lowest level in a year. And while some would-be sellers are backing off as demand declines, with new listings dipping to their second-lowest level since the start of 2026, there are still hundreds of thousands more sellers than buyers<\/a> in the market. That means buyers have negotiating power in most of the country.<\/p>\n \n\u201cIt\u2019s important for house hunters to remember that while mortgage rates were much lower during the pandemic, every listing was ultra-competitive; buyers often had to pay tens of thousands of dollars over the asking price to win a home,\u201d said Bonnie Phillips<\/a>, a Redfin Premier<\/a> agent in Cleveland. \u201cRates are higher now, but bidding wars are unlikely and buyers are often able to negotiate prices down and get concessions from sellers. Today\u2019s housing market rewards patience over panic: If you can afford to buy, focus on finding a home you love and negotiating a good deal rather than trying to perfectly time mortgage rates.\u201d<\/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