US homebuyer demand hits record low in July as mortgage rates and prices squeeze buyers

Pending home sales fell 2.5% month-over-month to 335,051 in July 2026, the lowest level since December 2025, according to Redfin’s monthly housing market report published on August 12.

Closed sales dropped 4.1% to 285,312, the lowest count in nearly two years on a seasonally adjusted basis.

Prices up, buyers out

The median home-sale price hit $407,730 in July, up 3.2% year-over-year and the highest figure ever recorded for the month. The average 30-year fixed mortgage rate climbed to 6.54%, its highest point in a full year.

Chen Zhao, Redfin’s Head of Economics Research, pointed to buyer wariness and a shrinking supply of new listings as the primary culprits behind the sales decline. New listings dropped to their lowest level since October 2024. Total active listings edged down 0.3% month-over-month.

Cancellations tell the real story

A full 14% of pending sales fell through in July, the highest share since 2023.

A tale of two markets

West Palm Beach saw pending sales jump 14.2% year-over-year. San Francisco and Milwaukee also posted stronger-than-average sales figures. Seattle experienced a 15.6% year-over-year decline in demand, and several Texas markets also weakened notably.

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