Higher mortgage rates weaken housing demand as listings rise

Mortgage rates near 6.65%-6.7% coincide with a four-month high in new listings, weaker pending sales, longer transaction times, growing seller concessions, and ARM demand near 8.5% of applications. The affordability squeeze is widening regional divergence, with high-price Western markets softer than supply-constrained Northeastern markets. Lower rates could unlock transactions while limiting price relief by releasing pent-up demand.