Mortgage rates leapt to a 10-month high, alarming prospective property buyers and sellers after a few weeks of strong need.
U.S. pending home sales fell 1.1% from a week previously throughout the week ending May 17, the very first decline considering that early April. Pending sales are still at their second-highest level given that September 2022, however it’s notable that the dive we saw over the last several weeks is beginning to reverse. Note that this information is seasonally changed.
In addition, mortgage-purchase applications declined 4% week over week. Homebuying demand fell due to the fact that home mortgage rates increased. The day-to-day average mortgage rate hit 6.75% this week, the highest level because July. Prices are increasing, too; the median asking price increased 1.4% year over year.
Pending home sales increased each week from early April to early May since of an enhancing task market and decreasing home loan rates; the day-to-day average rate dipped to the 6.3% range in mid-April. Now, rates have actually leapt due to the Iran war and the continued closure of the Strait of Hormuz startling international markets.
On the selling side, new listings declined 0.2% week over week on a seasonally adjusted basis. That marks the 3rd straight week of brand-new listings declining.
“Greater home mortgage rates are scaring off some purchasers, however that’s opening the door for others,” said Chen Zhao, Redfin’s head of economics research. “It’s currently a purchaser’s market, and today’s jump in mortgage rates may offer house hunters with stable earnings another chance to negotiate a home’s rate down and get concessions from sellers.”
During a time of changing demand, sellers might consider a “coming quickly” approach like Redfin Early Gain access to, which enables them to evaluate rates techniques and gauge interest before formally listing on the MLS.
For Redfin economists’ takes on the real estate market, please see Redfin’s “From Our Economic experts” page.
Leading indications
Indicators of homebuying
demand and activity Value(if suitable )Recent modification Year-over-year modification
Source Everyday typical 30-year
set home loan
rate 6.67%(May 20 )Highest level since July Down from 6.99%Home Loan News Daily Weekly average 30-year fixed mortgage rate 6.36% (week ending May
14)Up from 6.23 %three weeks
previously Below
6.76%Freddie Mac Mortgage-purchase
applications(seasonally changed)Down 4 %from a week earlier (as of week ending May
15 )Up 8% Home Mortgage Bankers Association Google searches of”homes for sale”Highest level in
9 months(since May 9)Up more than 20%Google Trends Exploring
activity Up 29 % from the start of the year(as of May 18)
At this time
in 2015, it was up 36%from the start of 2025 ShowingTime Secret housing-market information U.S. highlights: Four
weeks ending May 17, 2026 Redfin’s national metrics include data from 900+U.S.
city areas and
are based upon homes noted and/or offered during the period. Weekly housing-market data returns through 2021. Subject to modification. Four weeks ending May 17, 2026 Year-over-year change Notes Average list price$398,653
2.2 %Median asking cost(
seasonally adjusted)$403,140
1.4% Average month-to-month mortgage payment( seasonally adjusted)$2,597 at a 6.36%home loan rate -2.2 %Pending sales( seasonally adjusted) 342,047 7.8%Brand-new listings(seasonally adjusted)368,608 -0.5%Active listings(seasonally adjusted) 1,493,419 1.4% Months of supply 3.5 -0.1
pts. 4 to 5 months of supply is considered well balanced, with a lower number suggesting seller’s market conditions
Share of homes off market
in 2 weeks 39.4
%
Essentially the same Mean days on market 41 +3 days Share
of home listings
with
price drops 18.8 %Down from 20%Share of homes offered above list
price 27.1% Down from 28%Typical
sale-to-list cost ratio 98.9
%Down from 99%Metro-level highlights: 4 weeks ending May 17, 2026 Redfin’s metro-level data consists of the 50 most populous U.S. metros. Select cities may be omitted from
time to time to
guarantee data
accuracy. Metros with greatest year-over-year boosts Metros with biggest year-over-year declines Notes
Median price
San
Francisco
( 9%) Kansas City, MO(7.3% )Pittsburgh (5.6%)Detroit, MI (4.9% )Nassau County, NY( 4.6%)Miami(-2.5 %)San Jose,
