US Housing Holds Up at 6.75% Mortgage Rates as Pending Sales Run Nearly 10% Higher
Updated
Updated · HousingWire · May 27
US Housing Holds Up at 6.75% Mortgage Rates as Pending Sales Run Nearly 10% Higher
6 articles · Updated · HousingWire · May 27
Pending home sales stayed nearly 10% above year-ago levels even after mortgage rates briefly hit 6.75%, a sign the 2026 housing market is bending rather than freezing.
0.9% inventory growth and a 36.77% national price-cut rate—slightly better than about 37% a year earlier—suggest sellers are adjusting prices faster instead of pulling back listings.
Phoenix, Orlando and Cape Coral are still seeing deal flow despite elevated price cuts, while New York, Sacramento and parts of coastal California show tighter supply but weaker demand conversion.
HousingWire says the gap between active list prices and pending prices is becoming a key signal, showing where buyers are forcing faster price discovery under higher borrowing costs.
Improved mortgage spreads are cushioning the shock—rates would be 7.86% at 2023 spread levels versus about 6.65% now—making this cycle more behavior-driven than purely rate-driven.
Beyond interest rates, what hidden geopolitical risks could suddenly derail the housing market’s surprising stability?
With sellers cutting prices, are we seeing a true market correction or just a temporary adjustment to high rates?
Is the housing market's resilience a new normal, or a fragile balance on the verge of collapse?
U.S. Housing Market Outlook May 2026: Mortgage Rates at 6.65%, Regional Divergence, and Affordability Challenges
Overview
In late May 2026, the U.S. housing market is facing rising mortgage rates, with the average 30-year fixed rate reaching 6.65% after five consecutive weeks of increases. This trend is driven by higher Treasury yields, persistent inflation from elevated fuel costs, and growing global public debt. As a result, investors no longer expect Federal Reserve rate cuts and are even considering a possible rate hike by year-end. These factors have led to a sharp drop in mortgage applications and a cautious market mood, signaling potential challenges for both buyers and sellers in the months ahead.