Homebuying costs are back at levels not seen in over a year — and sellers are feeling it
The US housing market entered September with its sharpest affordability squeeze in more than a year, as rising mortgage rates and a stubborn price floor pushed the typical homebuyer's monthly payment to a 14-month high of $2,641, according to a new report from Redfin.
The weekly average 30-year fixed mortgage rate climbed to 6.71% for the week ending September 3, up from 6.5% a year earlier, per Freddie Mac's Primary Mortgage Market Survey (PMMS). For the week ending September 10, it reached 6.76%, the highest level in more than 14 months.
Combined with a 2.2% year-over-year rise in the national median home-sale price to $398,637, the dual pressure is driving a measurable pullback in activity.
Demand is showing the strain. Pending home sales for the four weeks ending September 6 were essentially unchanged from the prior week on a seasonally adjusted basis, edging up just 0.1%, and down 2.1% year over year, sitting near their lowest point since February.
Mortgage-purchase applications fell 0.2% for the week ending September 4, according to the Mortgage Bankers Association (MBA), though they remain 4% above the same week in 2025.
Mark Siwiec of Elysian Homes says rising rates are having a greater impact on buyer sentiment than the US-Canada trade dispute, with some purchasers choosing to wait for more economic stability.https://t.co/4kxmztIH7b
— Mortgage Professional America Magazine (@MPAMagazineUS) September 4, 2026
Sellers cut prices as homes sit longer
The pressure is registering in seller behavior. Some 20.8% of active listings carried a price reduction during the four-week period, up from 19.8% at the same point last year, a sign that sellers are recalibrating to meet a more cautious buyer pool.
Higher mortgage rates have continued to drag housing affordability lower across first-time and move-up buyer segments alike.
Vanessa Leimback, a Redfin Premier agent in Seattle, offered a clear message for sellers who have yet to adjust.
"Pricing attracts attention. Overpricing creates hesitation," Leimback said.
Competitive pockets remain for well-priced homes
The broad-based slowdown has not extinguished demand in every market. One in four homes, or 25.5%, sold above list price during the four-week period. That's a slight increase from 24.9% the prior year.
Markets including San Francisco and New York City suburbs remain among the more competitive nationally, with Redfin agents noting that well-priced homes in desirable neighborhoods continue to attract multiple offers.
For brokers tracking the rising inventory now handing buyers rare leverage in softer markets, the data reinforces the importance of granular, local intelligence over broad-market assumptions.
New listings fell 4.8% from the prior week on a seasonally adjusted basis, largely attributable to Labor Day holiday timing. However, they remain 2.1% above the same period in 2025.
Active inventory stood at 1,506,212 homes, also up 2.1% year over year. Months of supply reached 3.9, still below the 4-to-5-month threshold that typically signals a balanced market.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
