US Pending Home Sales Turn Negative as High Mortgage Rates Weigh on Demand
United States | September 7, 2026: The US housing market is showing signs of weaker buyer activity as pending home sales fell 0.2% year over year in August 2026, according to Realtor.com. The decline ended an eight-month streak of annual growth and marked the first year-over-year drop since November 2025.
Pending Sales Lose Momentum
Pending sales, which represent homes that are under contract and help indicate the pace of future completed transactions, had remained in positive territory for eight consecutive months. Growth had reached 4.8% in May before slowing in subsequent months.
Higher Mortgage Rates Pressure Buyers
Rising mortgage rates have emerged as a key factor behind the slowdown. Realtor.com noted that rates climbed for six consecutive months, putting additional pressure on affordability and making buyers more cautious about taking on new home loans.
Price Cuts Are Also Increasing
The slowdown in pending sales is occurring alongside greater pricing pressure on sellers. In August, 20.4% of active listings received a price cut, matching the level recorded a year earlier and reaching the 2026 average for the first time.
Buyers Could Get More Negotiating Power
Slower sales activity can create opportunities for buyers who remain financially prepared. With sellers becoming more flexible on pricing and the national median list price falling 1.3% year over year to $424,500, buyers may have greater room to negotiate in some markets.
What It Means for the US Housing Market
The August data points to a cooling housing market rather than a complete breakdown. Realtor.com noted that seasonal factors also contributed to the slowdown, but elevated mortgage rates remain a major obstacle for demand.
For buyers, the combination of softer demand, price reductions and more inventory could improve negotiating conditions. For sellers, accurate pricing is becoming increasingly important as buyers become more sensitive to monthly housing costs.