New home sales retreat in July
The average sales price told the opposite story, rising to $508,800, up 4.1% from June and 5.4% above a year earlier, indicating that activity at the upper end of the new construction market remains more resilient than conditions at the entry level.
Home‑purchase deal cancellations surged to a 3‑year high in July. Redfin data shows 14% of contracts fell through as buyers flex new leverage. Read more about the shifting housing market now. https://t.co/g6rwQKX4nE#realestate #housingmarket #mortgage #Redfin
— Mortgage Professional America Magazine (@MPAMagazineUS) August 21, 2026
The rate ceiling that won’t move
The drag on buyer demand has a familiar source. The 30-year fixed-rate mortgage held at 6.77% in the week ended August 14, according to the Mortgage Bankers Association (MBA), just below the 2026 high of 6.81% set at the close of July.
Rates have climbed roughly 0.60 percentage points since the United States and Israel launched strikes against Iran in late February, a geopolitical development that pushed global oil prices higher and kept inflation running at nearly twice the Federal Reserve’s 2% target.
The Fed has held its benchmark rate unchanged since December 2025. At its most recent meeting, three policymakers dissented in favor of a hike, a signal that rate relief remains a distant prospect.
The MBA projects the 30-year fixed to hold in the 6.1%-6.3% range through the end of 2026, assuming inflation moderates gradually.
