Weekly Real Estate News
U.S. pending home sales fell to their lowest level in Redfin’s weekly records as high mortgage rates sidelined buyers across the country’s largest housing markets, according to new figures released Thursday.
For the four weeks ending October 18, Redfin reported 281,749 seasonally adjusted pending sales, down 1.9% from the prior week and 14.4% from a year earlier. The total was the lowest in the company’s weekly data series, which dates to 2021.
Pending sales declined year over year in all 50 of the most populous U.S. metropolitan areas for the second consecutive week, according to Redfin. The steepest drops included Seattle, down 28.8%; San Diego, down 25.4%; and Atlanta, down 23.8%.
Higher borrowing costs weigh on buyers
Redfin calculated a typical monthly mortgage payment of $2,796, the second highest in its records, with the weekly average mortgage rate at approximately 7.4%. Meanwhile, the median home sale price increased only 0.2% year over year to $390,614, suggesting prices are losing momentum even as financing remains expensive.
New listings fell 1.4% from the prior week to 354,412, while active listings increased 0.1% to 1,507,161. The supply of homes for sale remains elevated partly because buyers are not absorbing inventory quickly.
Redfin’s weekly data are estimates subject to revision, not completed transaction counts. Its record-low designation applies to its series beginning in 2021, not the entire history of the U.S. housing market.
The findings add a more recent weekly perspective to WRE News’ coverage of September pending sales from the National Association of Realtors. The two reports use different measurement periods and methodologies.
Primary source: Redfin housing market update, October 22.
