Updated
Updated · Real Estate News · Jul 16
US Pending Home Sales Fall 5.4% as Mortgage Rates Hit 6.68% 10-Month High
Updated
Updated · Real Estate News · Jul 16

US Pending Home Sales Fall 5.4% as Mortgage Rates Hit 6.68% 10-Month High

3 articles · Updated · Real Estate News · Jul 16

Summary

  • June signed home purchase contracts dropped 5.4% from May, reversing a late-spring buyer rush and signaling a weak summer market; sales were down 0.3% from a year earlier.
  • Freddie Mac's average 30-year mortgage rate rose to 6.55%, while Mortgage News Daily put the daily average at 6.68% after renewed Iran war escalation pushed rates higher.
  • Record-high home prices and the highest mortgage rates in nearly a year are squeezing first-time buyers, with declines reported across all four U.S. regions.
  • Mortgage Bankers Association data showed overall loan activity fell 2.7% in the latest week and purchase applications dropped 7%, while Redfin also reported a 2.2% weekly dip in pending sales.
  • June inflation eased to 3.5%, below the 3.8% forecast, and rising inventory has modestly improved affordability, though renewed energy-price pressure could limit relief later this year.

Insights

With 70% of homeowners locked into low mortgage rates, what will it take to break the housing market's inventory paralysis?
Jobs are plentiful and wages are rising, so why is homeownership still moving further out of reach for many Americans?
As a Mideast conflict fuels global inflation, is the dream of an affordable American home now on hold indefinitely?