U.S. pending home sales fell 1.9% from a week earlier to the lowest level in records dating back to 2021, according to a new report from Redfin, the real estate brokerage powered by Rocket, covering the four weeks ending October 18.
Source: Redfin — U.S. Pending Home Sales Sink to a New Low
For the second week in a row, pending sales declined in all 50 of the most populous U.S. metro areas, as the weekly average mortgage rate held at 7.4% and priced out many would-be buyers.
Source: PR Newswire — Redfin Reports U.S. Pending Home Sales Sink to a New Low
The typical monthly housing payment for a homebuyer rose to $2,796, the second-highest level on record. At the same time, the median home-sale price rose just 0.2% year over year, a sign that price growth is losing steam.
Sellers are pulling back too
New listings fell 1.4% from a week earlier to the lowest level since July, as homeowners took note of slow demand. Total inventory still inched up 0.1% week over week, because homes are not selling quickly enough to deplete the pool.
Redfin said there are hundreds of thousands more home sellers than buyers across the country, giving buyers the most negotiating power they have had in over a decade — even as high rates keep many of them on the sidelines.
Pending sales -1.9% in a week, lowest since Redfin records began in 2021; mortgage rate 7.4%; median monthly payment $2,796; new listings -1.4%.
For diaspora families looking to buy in the United States, the report points to a market where choice and bargaining power are improving, but borrowing costs remain the main barrier.