US homebuyer demand hits record low in July as mortgage rates and prices squeeze buyers

Via bankrate.com

US homebuyer demand hits record low in July as mortgage rates and prices squeeze buyers

Pending sales dropped to their lowest point since late 2025 while contract cancellations surged to levels not seen since 2023, according to Redfin's latest housing report.

Pending home sales fell 2.5% month-over-month to 335,051 in July 2026, the lowest level since December 2025, according to Redfin’s monthly housing market report published on August 12.

Closed sales dropped 4.1% to 285,312, the lowest count in nearly two years on a seasonally adjusted basis.

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Prices up, buyers out

The median home-sale price hit $407,730 in July, up 3.2% year-over-year and the highest figure ever recorded for the month. The average 30-year fixed mortgage rate climbed to 6.54%, its highest point in a full year.

Chen Zhao, Redfin’s Head of Economics Research, pointed to buyer wariness and a shrinking supply of new listings as the primary culprits behind the sales decline. New listings dropped to their lowest level since October 2024. Total active listings edged down 0.3% month-over-month.

Cancellations tell the real story

A full 14% of pending sales fell through in July, the highest share since 2023.

A tale of two markets

West Palm Beach saw pending sales jump 14.2% year-over-year. San Francisco and Milwaukee also posted stronger-than-average sales figures. Seattle experienced a 15.6% year-over-year decline in demand, and several Texas markets also weakened notably.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
US homebuyer demand hits record low in July as mortgage rates and prices squeeze buyers
US homebuyer demand hits record low in July as mortgage rates and prices squeeze buyers

Pending sales dropped to their lowest point since late 2025 while contract cancellations surged to levels not seen since 2023, according to Redfin's latest housing report.

Via bankrate.com

Pending home sales fell 2.5% month-over-month to 335,051 in July 2026, the lowest level since December 2025, according to Redfin’s monthly housing market report published on August 12.

Closed sales dropped 4.1% to 285,312, the lowest count in nearly two years on a seasonally adjusted basis.

Advertisement

Prices up, buyers out

The median home-sale price hit $407,730 in July, up 3.2% year-over-year and the highest figure ever recorded for the month. The average 30-year fixed mortgage rate climbed to 6.54%, its highest point in a full year.

Chen Zhao, Redfin’s Head of Economics Research, pointed to buyer wariness and a shrinking supply of new listings as the primary culprits behind the sales decline. New listings dropped to their lowest level since October 2024. Total active listings edged down 0.3% month-over-month.

Cancellations tell the real story

A full 14% of pending sales fell through in July, the highest share since 2023.

A tale of two markets

West Palm Beach saw pending sales jump 14.2% year-over-year. San Francisco and Milwaukee also posted stronger-than-average sales figures. Seattle experienced a 15.6% year-over-year decline in demand, and several Texas markets also weakened notably.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.