The steepest weekly drop since 2022 just landed — here's what's behind it
Signed contracts to purchase US homes fell at their sharpest weekly pace since 2022 during the four weeks ending August 2. as mortgage rates climbed to their highest level in nearly a year and buyers pressed pause on what should be peak homebuying season.
Pending home sales dropped 3.7% week over week to a seasonally adjusted 311,150, their lowest reading in more than five months, according to Redfin, the real estate brokerage owned by Rocket Companies. Contract signings were down 1.9% year over year.
The 30-year fixed-rate mortgage hit 6.66% for the week ending July 30, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). It went up to 6.69% for the week ending August 6, its highest reading since late July 2025.
At that rate, the median monthly mortgage payment held at $2,631, continuing to compress affordability for purchase-ready buyers.
Supply creeps higher but demand stays flat
New listings edged up 1% week over week to a seasonally adjusted 354,313, though active listings fell 1.5% to 1,468,943.
Months of supply held at 3.6, still well below the four-to-five-month range associated with a balanced market. The median sale price rose 2.9% year over year to $406,362, and the average sale-to-list price ratio was 99%, up from 98.8% a year earlier.
Metro-level divergence remained stark. West Palm Beach, Fla., led pending gains at 13% year over year, while Seattle fell 19.8% and Houston dropped 17.1%.
On pricing, Newark, N.J., gained 9.8% while San Jose, Calif., fell 4.2%.
Buyer intent softens across multiple indicators
Mortgage purchase applications fell 4% from the prior week on a seasonally adjusted basis for the week ending July 29, according to the Mortgage Bankers Association (MBA), though they remained 3% above year-ago levels.
Google searches for "homes for sale" were down roughly 3% from a month earlier and off 6% year over year as of August 2. Touring activity climbed 12% from the start of 2026 per ShowingTime, still positive, but lagging the 29% gain recorded at the same point in 2025.
Rising rates have driven buyers to the sidelines throughout the summer and the latest Redfin data reinforces that trend. With the MBA projecting the 30-year fixed rate will hold in the 6.1%–6.3% range through year-end, meaningful cost relief looks unlikely before fall.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
