US new home listings rise 2% to highest level since August 2022

More sellers are entering the market, but buyers aren't biting as mortgage rates and prices push affordability to record lows The US housing market just hit a milestone that sounds encouraging until you look at the fine print. New home listings climbed 2.1% week-over-week for the four weeks ending August 30, reaching their highest level since August 2022, according to Redfin's weekly housing market report. That's an 8% jump compared to the same period last year. The numbers tell a split story Pending home sales, the best real-time indicator of actual buyer activity, dropped 0.1% week-over-week. That puts them at the lowest reading since February and represents a 2.5% decline year-over-year. In practical terms, more homes are being listed while fewer contracts are getting signed. Gloria Your portfolio shows you what you own. Gloria Finance shows you what's worth looking at next. Discover ideas → Advertisement Total active listings ticked up 0.4% on the week to roughly 1.51 million homes. Months of supply rose to 4, up from 3.7, creeping toward the 4-to-5-month range that economists generally consider a balanced market. The typical home sale price came in at $398,632, up 2.2% from a year ago. Combined with mortgage rates sitting at 6.66% for a 30-year fixed loan, near the yearly high, the math for buyers remains punishing. The median monthly mortgage payment now sits at an estimated $2,592, representing a record low in housing affordability. Why supply is rising but demand isn't following A $400K home at a 6.66% mortgage rate costs roughly $600 more per month than the same home would have cost at the sub-3% rates available in early 2021. Over a 30-year loan, that's more than $200K in additional interest payments. What this means for the housing market outlook For existing homeowners, the 2.2% annual price appreciation is still positive, but it's barely keeping pace with inflation. Homeowners who locked in sub-4% mortgage rates during 2020 and 2021 remain effectively anchored to their current properties, since trading up means swapping a cheap mortgage for an expensive one.