Housing Payments Hit 1-Year High, Sending Buyers to the Sidelines

Pending home sales fell for the fifth week in a row, and new listings declined, too.

The median U.S. monthly housing payment hit $2,647 during the four weeks ending June 14, its highest level in a year and just about $100 shy of 2023’s all-time high.

Housing payments are rising because both home-sale prices and mortgage rates remain stubbornly high. The median sale price rose 2.3% year over year to a record high of $403,889, and the weekly average mortgage rate was 6.52%, near its highest level in recent months.

High costs are pricing many would-be homebuyers out of the market, while broader economic uncertainty is causing others to think twice before making a major purchase. That has pushed pending home sales down week over week, marking the fifth straight week of declines.

Some prospective sellers are backing off, too, as they notice softer buyer demand. New listings fell 0.4% week over week, and the total number of homes for sale fell 0.1%.

With more homes on the market than active buyers in many areas, sellers may need to price more carefully. Homes that are priced too high can sit longer, while competitively priced homes may still attract serious buyers.

For buyers, the key takeaway is that affordability remains tight. Even a small change in mortgage rates or home prices can affect monthly payments, buying power, and loan strategy.

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Leading indicators 

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Key housing-market data

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