Higher Mortgage Rates Push Pending Home Sales Down for Second Straight Week

Key Terms

pending home sales financial

Pending home sales refer to homes that have been sold but where the transaction has not yet been finalized or closed. This measure indicates future activity in the housing market, helping investors gauge whether home buying is increasing or slowing down. Rising pending sales can suggest stronger demand, while falling figures may signal a slowdown in the market.

mortgage-purchase applications financial

Mortgage-purchase applications are requests submitted by consumers to lenders for home loans used to buy properties, as opposed to loans for refinancing existing mortgages. Investors watch the number and trend of these applications because they act like a real-time thermometer of housing demand and consumer confidence—rising applications suggest stronger home sales, construction activity, and related spending, while falling applications can signal cooling in the housing market and pressure on companies tied to mortgages and homebuilding.

months of supply technical

Months of supply measures how long it would take to sell all available homes at the current sales rate. It is calculated by dividing the total number of homes for sale by the number of homes sold each month. A lower number suggests a faster market with high demand, while a higher number indicates a slower market with more choices for buyers.

sale-to-list price ratio financial

The sale-to-list price ratio measures how much of a property's asking price is actually paid by buyers, expressed as a percentage. For example, if a home is listed at $300,000 and sells for $285,000, the ratio is 95%. This figure helps investors gauge the strength of the market: a higher ratio suggests buyers are willing to pay close to asking prices, indicating high demand.

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Redfin reports some would-be homebuyers are hesitating as housing costs rise and the ongoing Iran war makes the economy feel shaky

SEATTLE--(BUSINESS WIRE)-- Fewer house hunters are going under contract to buy homes, according to a new report from Redfin, the real estate brokerage powered by Rocket.

U.S. pending home sales fell 1.5% from a week earlier on a seasonally adjusted basis during the week ending May 24, the second straight decline after four weeks of increases. Additionally, mortgage-purchase applications decreased to their lowest level since early April.

House hunters are backing off mainly because mortgage rates are rising, with the daily average hitting a 10-month high of 6.75% last week. Higher rates—along with rising home-sale prices—brought the median monthly housing payment to $2,637, the highest level in 11 months. Financial uncertainty is playing a role, too; some would-be homebuyers are jittery about making a huge purchase when the economy feels shaky and consumer confidence is at an all-time low.

Mortgage rates jumped over the last few weeks due to several factors: the ongoing Iran war and closure of the Strait of Hormuz, rising oil prices, AI-driven inflation and Fed officials floating the possibility of interest-rate hikes.

On the selling side, new listings rose slightly (0.2%) from a week earlier, the first increase after four weeks of declines. With more home sellers than buyers in the market, Redfin agents say it’s important for sellers to price realistically and to be open to negotiations.

“I’m seeing a lot of house hunters who are what I call ‘tire kickers,’ meaning they’re serious about buying—but they’re cautious, waiting to see if mortgage rates decline or the economy improves,” said Jason Gale, a Redfin Premier agent in New Orleans. “Sellers can entice those buyers by pricing slightly below recent comps, making minor repairs and staging so the house makes the best first impression it possibly can, and offering incentives like rate buydowns, repair credits or a flexible closing date.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity
	Value (if applicable)	Recent change	Year-over-year change	Source
Daily average 30-year fixed mortgage rate	6.61% (May 27)	Down from 6.75% a week earlier	Down from 7.02%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.51% (week ending May 21)	Highest level since August	Down from 6.86%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Down 0.4% from a week earlier (as of week ending May 22)	Up 5%	Mortgage Bankers Association
Google searches of “homes for sale”		Essentially unchanged from a month earlier (as of May 23)	Essentially unchanged	Google Trends
Touring activity		Up 20% from the start of the year (as of May 25)	At this time last year, it was up 33% from the start of 2025	ShowingTime

Key housing-market data

U.S. highlights: Four weeks ending May 24, 2026 Redfin’s national metrics include data from 900+ U.S. metro areas and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2021. Subject to revision.
	Four weeks ending May 24, 2026	Year-over-year change	Notes
Median sale price	$398,768	2.2%
Median asking price (seasonally adjusted)	$404,381	1.9%
Median monthly mortgage payment (seasonally adjusted)	$2,637 at a 6.51% mortgage rate	-0.9%	Highest level in 11 months
Pending sales (seasonally adjusted)	336,818	4.7%
New listings (seasonally adjusted)	368,522	0.5%
Active listings (seasonally adjusted)	1,492,893	0.8%
Months of supply	3.4	-0.1 pts.	4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions
Share of homes off market in two weeks	39.3%	Essentially unchanged
Median days on market	40	+2 days
Share of home listings with price drops	18.9%	Down from 20%
Share of homes sold above list price	27.5%	Down from 28%
Average sale-to-list price ratio	98.9%	Down from 99%

Metro-level highlights: Four weeks ending May 24, 2026 Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
	Metros with biggest year-over-year increases	Metros with biggest year-over-year decreases	Notes
Median sale price	San Francisco (10.1%) Kansas City, MO (7.8%) Pittsburgh (5.4%) St. Louis (4.9%) Nassau County, NY (4.8%)	San Jose, CA (-4.4%) Orlando, FL (-2.7%) Phoenix (-1.4%) Portland, OR (-0.4%) Fort Worth, TX (-0.4%)
Pending sales	West Palm Beach, FL (30.8%) San Francisco (19.5%) Nassau County, NY (15.2%) Minneapolis (14%) Milwaukee (12.2%)	Houston (-14.5%) Seattle (-8.9%) Denver (-4.4%) Atlanta (-3.1%) Tampa, FL (-3.1%)	Declined in 8 metros
New listings	Cincinnati (13.5%) Warren, MI (11.5%) Columbus, OH (11%) San Jose, CA (10.8%) Newark, NJ (10.7%)	St. Louis (-15.2%) Denver (-12%) Fort Worth, TX (-11.9%) Dallas (-10.4%) Riverside, CA (-9.7%)

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-pending-sales-drop-rates-rise

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260528308683/en/

Contact Redfin Journalist Services:
Tana Kelley
press@redfin.com

Source: Redfin