US mortgage rates climb, pending home sales fall

Pending home sales in the United States slipped to their lowest level since early April, with seasonally adjusted pending contracts falling to 322,739 in the four weeks ending July 26, a 1.7% decline in the final week. The drop coincides with rising mortgage costs; the weekly average rate for a 30‑year fixed‑rate mortgage rose to 6.66% according to Freddie Mac, while the daily index reached 6.83%, the highest in a year. Redfin noted a modest dip in the median monthly house payment to $2,575, the lowest in three months, and highlighted that median asking prices have stalled as sellers outnumber buyers.

Mortgage professionals warned that rates are likely to remain elevated despite the Federal Reserve’s decision to hold its benchmark rate steady. The Fed’s split vote and higher long‑term bond yields mean mortgage rates are tied to broader market movements, prompting lenders to prepare borrowers for continued volatility. The ongoing U.S.–Israel‑Iran conflict has further pressured energy prices and inflation, adding to the uncertainty in the housing market.