Fewer homeowners are listing their homes for sale amid a dampened US housing market, with new listings dropping by 1.7 percent for the week ending June 21 from the previous week.
There were 357,733 new listings for homes for sale, the “lowest level since February,” real estate brokerage Redfin said in a June 25 statement.
“Prospective home sellers are backing off partly because they notice soft homebuying demand.
“Pending home sales fell 0.1 percent week over week, a small dip but the third straight week of slight declines from their May peak, and mortgage-purchase applications fell for the second straight week. But it’s worth noting that pending sales are holding up better than they were last year; they rose 4.2 percent on a year-over-year basis.”
Pending sales refer to contracts that have been signed but not yet completed.
Redfin blamed the sluggish buying demand on “stubbornly high” housing payments. The median monthly mortgage payment for the four weeks ending June 21 was $2,628.
High monthly payments can be attributed to elevated sales prices, with the median price up 2.5 percent on an annual basis to a “record-high” of $408,814.
The weekly average rate on a 30-year fixed-rate mortgage was 6.49 percent for the week ending June 24, according to data from Freddie Mac. Mortgage rates have risen since late February, when they briefly dipped below 6 percent.
Since mid-May, the weekly rates have been hovering near the 6.5 percent level reached in September last year.
According to Redfin, many prospective sellers are currently locked into low-rate mortgages. As such, giving up properties now could mean having to buy a new home at higher rates, which could increase hesitancy among sellers.
As home sellers exceed buyers, the latter are in a position to negotiate prices. In May, almost half of home sellers gave concessions—the “highest share on record for that month.”
In a June 23 report, real estate marketplace Zillow said high mortgage rates have put the housing market recovery “on pause.”
“With our latest forecast, this slowdown is what we’re currently projecting for the rest of 2026. Zillow’s latest forecast calls for roughly flat home values and existing home sales in 2026, driven by reversion to mortgage rates in the mid 6’s,” the report said.
Housing Bill
Lawmakers have taken action to make homes more affordable for Americans. On June 22, the Senate passed the bipartisan 21st Century Road to Housing Act. The House then passed the measure the following day.The bill has been sent to President Donald Trump’s desk for signing. However, Trump announced in a June 24 Truth Social post that he was canceling the bill’s signing ceremony “until such time as we pass the desperately needed SAVE AMERICA ACT.” In March, Trump said he wouldn’t sign any legislation until the Act, an election integrity bill, is passed by Congress.
In a June 25 post on X, Sen. Tammy Duckworth (D-Ill.) criticized Trump’s decision.
“Real relief for families was just within reach. Trump is blocking it because he'd rather make it harder for you to vote than help you afford housing,” she said.
Under the Trump administration, the Department of Housing and Urban Development (HUD) has taken various measures to tackle high home prices.
On June 23, HUD announced it was slashing red tape to lower the cost of housing and improve affordability for Americans seeking mortgages insured by the Federal Housing Administration.
“Every unnecessary regulation comes with a cost, and too often homebuyers pay the price,” said HUD Secretary Scott Turner. “If a policy does not protect taxpayers, improve affordability, or expand opportunity for Americans, we should rethink it.”
