Monthly mortgage costs hit 14-month high, sidelining buyers
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.
