Mortgage rates jumped to a 10-month high, spooking would-be homebuyers and sellers after a few weeks of solid demand. 

U.S. pending home sales fell 1.1% from a week earlier during the week ending May 17, the first decline since early April. Pending sales are still at their second-highest level since September 2022, but it’s notable that the jump we saw over the last several weeks is starting to reverse. Note that this data is seasonally adjusted. 

Additionally, mortgage-purchase applications declined 4% week over week. Homebuying demand fell because mortgage rates increased. The daily average mortgage rate hit 6.75% this week, the highest level since July. Prices are rising, too; the median asking price increased 1.4% year over year.