SEATTLE, July 9 –U.S. pending home sales rose 1.3% from a week earlier to their highest level since the first half of May during the four weeks ending July 5. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket. This data is seasonally adjusted.
Homebuying demand picked up partly because of temporarily declining mortgage rates. The weekly average rate dipped to 6.43% on July 2, its lowest level in six weeks, as negotiations between the U.S. and Iran to end the war eased financial turmoil. That pushed the median monthly housing payment down to $2,598, its lowest level in six weeks. The mortgage-rate respite was brief; rates have since bounced back up, with the daily average rising to 6.68% on July 8.
Home-sale prices remain stubbornly high: The median sale price rose 2.2% year over year to $408,808, just about $500 shy of the all-time high.
On the listing side, would-be home sellers haven’t caught up to the recent uptick in demand from buyers. New listings fell 2.5% week over week to their lowest level since January.
“The housing market is kicking off the summer by showing a bit of resilience,” said Chen Zhao, Redfin’s head of economics research. “While near-record prices and a lack of new listings are keeping many would-be buyers on the sidelines, there are enough house hunters hitting the pavement to push pending sales up. If that trend continues, we may get more fresh listings from sellers hoping to take advantage of demand and high prices.”