Housing market: a gauge in future house sales has become negative despite 9 weeks of drop in mortgage rates

Sales of pending houses, or the signed contracts leading to a sale, dropped for the first time in almost three months, slipping approximately 1% in the four weeks ending on September 21 compared to a year earlier, according to a Redfin report on Thursday.

It is despite the average weekly mortgage rate slippery for nine consecutive weeks, reaching a lower 11 months of 6.26% after reaching 6.8% at the start of the summer.

Meanwhile, separate data from the National Association of Realtors showed Thursday that sales of existing houses dropped 0.2% in August compared to the previous month. While they increased 1.8% compared to a year ago, the recent trend still indicates a stagnant housing market.

Admittedly, lower mortgage rates have triggered an increase in at least one corner of the housing market. Redfin stressed that mortgage requests to refinance The houses jumped 58% in the second week of September compared to the previous week.

But mortgage purchase requests have increased by 3%, and the anemic sales data is booming than borrowing costs cheaper will quickly jump the housing market.

Redfin has highlighted four factors weighing on the demand for housing: the prices of still elected houses, potential buyers while waiting for mortgage rates to exceed 6%, the supply in the mute of new announcements and economic uncertainty.

Those who wait for mortgage rates to drop even more may have missed their chance, because borrowing costs have started to check again.

According to Mortgage News Daily, the fixed prices of 30 years of high level were in the high range of 6.3% Friday, flat compared to the previous Friday, but against 6.1% in the first half of last week.

It is as recent economic data has been hot, which reduces expectations for aggressive rate reductions in the federal reserve. Consequently, the yields of the Treasury have rebounded, raising the costs of borrowing elsewhere, including mortgage rates.

Meanwhile, employment growth has not been as robust as the other indicators, throwing sadness on the housing market. In addition, the uncertainty concerning the prices and fears of recession by President Donald Trump persist, according to Redfin.

“Many buyers are hesitant because they are concerned about potentially losing their jobs, losing money in their action portfolio and the economy in general,” said Josh Felder, an agent of Prime Minister of Redfin in San Francisco, in a statement. “Many buyers who go ahead make offers with contingencies and are ready to move away during the inspection period if they do not obtain the concessions they wish.”

Global Forum fortune returns on October 26 to 27, 2025 in Riyadh. CEOs and world leaders will meet for a dynamic event only invitation that shapes the future of business. Request an invitation.