Key facts
- Mortgage rates fell toward 7.30% from a peak around 7.60%.
- The 10-year Treasury yield fell below 5%.
- Weekly pending sales data showed a slight positive print.
- Housing inventory grew 5.68% year-over-year.
- The price-cut percentage for homes was 43% in 2026, up from 42% in 2025.
US housing demand showed signs of stabilizing last week as mortgage rates eased from their recent peaks. The 10-year Treasury yield's drop below 5% contributed to lower mortgage rates, pausing the decline in housing demand. While this offers a temporary respite, analysts caution against overinterpreting the slight positive print in weekly pending sales data, noting that rates above 7% have historically led to softer housing data. Housing inventory growth remains tame, though it has picked up since mid-August. New listings saw a year-over-year decline, and the percentage of homes experiencing price cuts increased compared to the previous year.