Greater Mortgage Rates Press Pending Home Sales Down for 2nd Straight Week

Some prospective property buyers are hesitating as real estate costs increase and the ongoing Iran war makes the economy feel unstable.

Fewer house hunters are going under agreement to purchase homes. U.S. pending home sales fell 1.5% from a week earlier on a seasonally adjusted basis throughout the week ending Might 24, the 2nd straight decline after four weeks of boosts. In addition, mortgage-purchase applications decreased to their most affordable level since early April.

Home hunters are backing off primarily because mortgage rates are rising, with the daily average hitting a 10-month high of 6.75% recently. Higher rates– along with rising home-sale prices– brought the median month-to-month housing payment to $2,637, the greatest level in 11 months. Monetary unpredictability is playing a role, too; some prospective homebuyers are jittery about making a substantial purchase when the economy feels shaky and consumer confidence is at an all-time low.

Home mortgage rates jumped over the last couple of weeks due to several elements: the continuous Iran war and closure of the Strait of Hormuz, rising oil prices, AI-driven inflation and Fed officials drifting the possibility of interest-rate hikes.

On the selling side, brand-new listings rose a little (0.2%) from a week previously, the very first increase after 4 weeks of decreases. With more home sellers than purchasers in the market, Redfin representatives say it is necessary for sellers to rate realistically and to be available to settlements.

“I’m seeing a lot of house hunters who are what I call ‘tire kickers,’ meaning they’re major about buying– however they’re cautious, waiting to see if home mortgage rates decrease or the economy enhances,” said Jason Wind, a Redfin Premier representative in New Orleans. “Sellers can lure those purchasers by pricing slightly below current compensations, making small repairs and staging so your home makes the best impression it perhaps can, and offering incentives like rate buydowns, repair credits or a flexible closing date.”

For Redfin economists’ handles the real estate market, please see Redfin’s “From Our Economic experts” page.

Leading indications

Indicators of homebuying

from 7.02%Mortgage News Daily Weekly average 30-year fixed home loan rate 6.51% (week ending May 21) Highest level considering that August Down from 6.86%Freddie Mac Mortgage-purchase applications (seasonally changed)Down 0.4% from a week previously

homes for sale”Essentially the same from a month earlier( since 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 nationwide metrics consist of information from 900