U.S. home prices fall for the first time in three years, Redfin says, as rates top 7%
The median U.S. home-sale price was $389,601, down 0.1% from a year earlier. Pending sales fell to a record low.
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U.S. home prices have fallen year over year for the first time in three years, according to the real estate portal Redfin. In the four weeks ending Oct. 25, 2026, the median sale price was $389,601, down 0.1% from a year earlier. That is according to Redfin's Oct. 29 report, covered by the trade publications WRE News and Real Estate News. Brokerage Compass estimates the national median sale price at $392,000, down 1.7% from a year earlier.
Seasonally adjusted pending sales fell to 276,352, according to Redfin – down 15.9% from a year earlier and the lowest level since its records began in 2021. At the same time, 1,510,619 homes were listed for sale, up 2.2% from a year earlier. The typical monthly mortgage payment rose to $2,786, up 10.7%. Rates are one reason: according to mortgage financier Freddie Mac, the 30-year fixed rate was 7.24% on Oct. 29, after 7.32% a week earlier and about 6.17% a year ago.
"Higher mortgage rates can put pressure on home prices," Mark Fleming, chief economist at insurer First American, said according to Real Estate News. Compass chief economist Mike Simonsen expects some sellers in inventory-starved markets "are going to be surprised at how abrupt this change is." WRE News noted that Redfin had reported a slight 0.2% increase a week earlier; whether revisions explain the difference is unclear.
This article is for information only and is not legal, tax, financial or medical advice. Figures as of the date stated.