Pending US Home Sales Hit Lowest Level Since 2023

Pending home sales in the United States fell to 299,126, marking the lowest level since late 2023. Redfin data shows this weekly drop of 3.5% reflects a broader 5.4% decline from the previous year.

The decline signals that high mortgage rates continue to suppress purchase activity across the market. This contraction in contract signings represents a significant shift in buyer behavior.

Inventory growth outpaces buyer demand

Active inventory rose to approximately 1.5 million homes, creating a more balanced market environment. Months of supply increased to 4.1, approaching the four-to-five month range economists consider neutral.

New listings remained 1.5% above year-ago levels despite a slight weekly dip. This accumulation of stock reduces competition and grants buyers greater negotiating power.

Prices hold firm despite softer demand

The median US home sale price reached $397,633, up 2% from a year earlier. This price resilience persists even as the demand pool shrinks significantly.

Price reductions became more common, with 20.8% of listings carrying cuts. However, the median days on market held steady at 46, unchanged from the prior year.

Rising rates squeeze monthly payments

The average 30-year fixed mortgage rate climbed to 6.76%, up from 6.35% a year ago. This increase pushed the typical monthly payment to approximately $2,633.

Mortgage purchase applications fell 19% year over year for the period ending September 11. The Mortgage Bankers Association reports this drop reflects sustained affordability constraints. As noted by mpamag.com, the market faces structural challenges rather than just temporary fluctuations.