High Costs Sideline Some Would-Be Homebuyers, Handing Upper Hand to Those Who Stay in the Market

Redfin agents say pricing realistically from the start is the key to finding a buyer; 21% of home sellers are dropping their price

SEATTLE, Sept. 10, 2026 /PRNewswire/ -- Homebuying costs have hit their highest level in over a year, according to a new report from Redfin, the real estate brokerage powered by Rocket.

Here's what else is happening in the housing market for the four weeks ending Sept. 6:

• The typical U.S. homebuyer's monthly mortgage payment reached a 14-month high of $2,641. That's partly because the median home-sale price rose 2.2% year over year, and partly because the weekly average mortgage rate increased to 6.71%.
• Elevated costs are keeping some would-be buyers on the sidelines. Pending home sales were essentially flat (+0.1%) from a week earlier on a seasonally adjusted basis, sitting near their lowest level since February. Economic uncertainty is also contributing to sluggish demand. Buyers have negotiating power in most of the country, but for many house hunters, that isn't enough to offset high costs.
• New listings fell due to Labor Day, but they're still higher than last year. New listings fell 4.8% from a week earlier on a seasonally adjusted basis, but that's mostly because of the timing of Labor Day weekend. New listings are up 2.1% from a year ago, and the total number of homes for sale is also up 2.1%. Sellers are listing their homes because they want to sell before prices decline, life circumstances are prompting them to move, and the lock-in effect is easing.
• Sellers should adjust their expectations. Just over one in five (20.8%) home listings had a price drop, up from 19.8% a year ago, and the typical home that sold spent 46 days on the market—one day longer than a year earlier. With some buyers shying away due to high costs and homes taking longer to sell, pricing a home realistically from the start is crucial. "Pricing attracts attention. Overpricing creates hesitation," says Vanessa Leimback, a Redfin Premier agent in Seattle.
• But some homes are still attracting competition. One-quarter (25.5%) of homes that sold went for over their asking price, up slightly from 24.9% a year earlier. Some parts of the country, including San Francisco and New York City suburbs, have competitive markets, and Redfin agents all over the U.S. say well-priced homes in desirable neighborhoods are still attracting bidding wars.

For Redfin economists' takes on the housing market, please visit Redfin's "From Our Economists" page.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-high-costs-sideline-buyers-negotiating-power

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.

SOURCE Redfin