Redfin reports that higher housing costs, along with economic uncertainty that comes with the Iran war, are causing some house hunters to think twice
Pending home sales fell 1% year over year, the biggest decline in a month, according to a new report from Redfin, the real estate brokerage powered by Rocket. On the selling side, new listings inched up 0.3% year over year.
House hunters are wary partly because of rising mortgage rates and economic uncertainty. The weekly average mortgage rate has hit a three-month high of 6.22% as the Iran war and jitters about inflation rattle markets. The daily average mortgage rate rose as high as 6.55% on Tuesday.
Markets are bouncing around this week as investors try to keep up with conflicting messages about the conflict in the Middle East; stocks and bonds rallied on Monday after the White House said the U.S. and Iran had productive conversations, but it is unclear when the conflict will end.
Rising mortgage rates, along with a 1.8% year-over-year increase in U.S. home-sale prices, have driven the median monthly housing payment to $2,695—the highest level since June (housing payments are seasonal; they typically peak in late spring or early summer). The median payment is down 1.5% compared to a year ago, the smallest decline in five months. Redfin agents say some would-be buyers are holding off as costs stay high.
“In Boston, where a mortgage payment can be $10,000 per month, small changes in rates make a big difference,” said Aditi Jain, a Redfin Premier agent in Boston. “Many buyers are waiting, hoping interest rates dip below 6% for a meaningful amount of time, before jumping into the market. The buyers who need to move now—maybe they’re expecting a baby or relocating for a job—are moving forward, but they may opt for a smaller home or a condo instead of a single-family house to keep their monthly payment in budget.”
A separate Redfin report shows there are hundreds of thousands more home sellers than buyers in the market overall, giving house hunters negotiating power.
For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.
Leading indicators
Indicators of homebuying demand and activity |
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|
Value (if applicable) |
Recent change |
Year-over-year change |
Source |
Daily average 30-year fixed mortgage rate |
6.48% (March 25) |
Up from 4-year low of 5.99% a month earlier |
Down from 6.72% |
Mortgage News Daily |
Weekly average 30-year fixed mortgage rate |
6.22% (week ending March 19) |
Highest level in over 3 months |
Down from 6.67% |
Freddie Mac |
Mortgage-purchase applications (seasonally adjusted) |
|
Down 5% from a week earlier (as of week ending March 20) |
Up 5% |
Mortgage Bankers Association |
Google searches of “homes for sale” |
|
Up 12% from a month earlier (as of March 23) |
Up 16% |
Google Trends |
Touring activity |
|
Up 23% from the start of the year (as of March 19) |
At this time last year, it was up 35% from the start of 2025 |
ShowingTime |
Redfin’s Homebuyer Demand Index was removed this week to ensure data accuracy. |
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Key housing-market data
U.S. highlights: Four weeks ending March 22, 2026 Redfin’s national metrics include data from 400+ U.S. metro areas and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. |
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|
Four weeks ending March 22, 2026 |
Year-over-year change |
Notes |
Median sale price |
$389,269 |
1.8% |
Biggest increase since November |
Median asking price |
$423,225 |
2% |
|
Median monthly mortgage payment |
$2,695 at a 6.22% mortgage rate |
-1.5% |
Smallest decline in 5 months |
Pending sales |
84,613 |
-1% |
Biggest decline in a month |
New listings |
99,603 |
0.3% |
|
Active listings |
1,052,136 |
-1.7% |
Biggest decline since 2023 |
Months of supply |
4.3 |
+0.2 pts. |
4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions |
Share of homes off market in two weeks |
36.1% |
Essentially unchanged |
|
Median days on market |
56 |
+6 days |
|
Share of homes sold above list price |
22.4% |
Down from 24% |
|
Average sale-to-list price ratio |
98.3% |
Down from 98.5% |
|
Metro-level highlights: Four weeks ending March 22, 2026 Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. |
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|
Metros with biggest year-over-year increases |
Metros with biggest year-over-year decreases |
Notes |
Median sale price |
Baltimore (8.4%) San Francisco, CA (7.6%) Pittsburgh (6.8%) Cincinnati (6.7%) Milwaukee (6.1%) |
Oakland, CA (-5.4%) Dallas (-4.2%) Austin, TX (-2.1%) Denver (-1.6%) Houston (-1.3%) |
Declined in 12 metros |
Pending sales |
West Palm Beach, FL (20.5%) Austin, TX (11.9%) Milwaukee (9.8%) Miami (6.9%) Phoenix (6.7%) |
New Brunswick, NJ (-19%) Nassau County, NY (-19%) Providence, RI (-18.1%) New York (-16.8) Houston (-14%) |
|
New listings |
Milwaukee, WI (13.4%) Washington, D.C. (6.4%) Cleveland (4.7%) Portland, OR (3.9%) Seattle (3.8%) |
Providence, RI (-23.8%) Nassau County, NY (-17.1%) Tampa, FL (-14.2%) Miami (-13.7%) Jacksonville, FL (-11.1%) |
|
To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-market-jitters-mortgage-rates
About Redfin
Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.
You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260326564287/en/
Contacts
Contact Redfin Journalist Services:
Tana Kelley
press@redfin.com
