Today’s housing market rewards patience over panic: With hundreds of thousands more sellers than buyers in the U.S., buyers in most of the country have time to peruse options and negotiate.
U.S. pending home sales fell to their lowest level since early April during the four weeks ending July 26, dropping 1.7% in the last week alone. Tours of home listings are up 15% since the start of the year, compared with a 31% increase at this time last year, according to data from ShowingTime.
Homebuying demand is declining partly because mortgage rates are rising: The daily average rate rose to 6.85% at the end of last week, the highest level in over a year–and there’s little relief on the horizon. Rates remain under pressure due largely to inflation concerns and volatile oil prices tied to geopolitical tensions. Although the labor market remains strong, the combination of high borrowing costs and widespread economic uncertainty is prompting many house hunters to press pause.