Home Prices Dip 0.4% as Pending Sales Slide

Redfin's October data shows the first annual U.S. median sale price decline since May 2023, as mortgage rates hit a three-year high.

Updated on Nov. 10, 2026 in Residential

Isometric editorial illustration of three brass keys on a pale slate surface before a flat-roofed house block, with a downward diagonal line behind, evoking softening home prices. — U.S. median home sale price fell 0.4% from a year earlier to $388,634 in October as average mortgage rates hit a three-year high of 7.33%, Redfin reported. AI Illustration. Upload story photo >

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The U.S. median home sale price fell 0.4% from a year earlier to $388,634 in October, according to Redfin, ending a three-year streak of year-over-year gains. Pending home sales dropped 3.6% from September on a seasonally adjusted basis.

Why it matters

Average mortgage rates reached 7.33% in October, a three-year high, pushing pending sales to their lowest level in more than a decade. The shift suggests affordability constraints are beginning to weigh on national home prices.

Redfin's October figures show 61% of homes sold below their original list price and 36% had at least one price cut. Closed sales fell 2.1% from the prior month to the lowest level since December 2023.

The players

Redfin

Redfin is a national real estate brokerage and data company that publishes regular housing market reports tracking sales, pricing and mortgage trends.

The details

Prices rose in more than half of the 50 largest U.S. metro areas even as the national median slipped. San Francisco led gains at 16.8%, while Austin, Texas fell 6.5%, with Seattle, Nashville and San Diego also showing notable declines in price or pending sales.

August 2026: Home prices rose 2.5% year over year.
September 2026: Average mortgage rate was 6.86% and pending sales served as the baseline.
October 2026: Median sale price fell 0.4% to $388,634, the first annual drop since May 2023.

Market Trajectory

This October drop breaks the three-year streak of annual median price increases tracked in Redfin's monthly housing reports. It follows a period in which mortgage rates climbed toward levels that have cooled buyer demand.

Buyers facing mortgage rates above 7% face higher monthly payments than a year ago, even as some prices soften. Sellers in many markets are reducing list prices, with 36% of October listings receiving at least one cut.

The takeaway

Watch mortgage rates closely before committing to a purchase, as borrowing costs now shape affordability more than headline prices. Compare recent sales in your target neighborhood against list prices to gauge negotiating room.