Mortgage Rates Rise, Home Sales Decline, Prices Remain Steady

Limited inventory and rising mortgage rates have caused a dip in homebuying demand, with pending home sales falling 17% YoY and mortgage-purchase applications and Redfin's Homebuyer Demand Index both down about 7% from a month ago. However, low inventory is propping up prices for sellers who do list their homes, with the median U.S. sale price down only 1.9% YoY, the smallest decline in two months. Many prospective buyers are waiting for rates to drop closer to 6% and more listings to hit the market before making offers.