The slack in demand reflects buyer reactions to climbing interest rates and home prices, which are pricing some buyers out of the market. Thirty-year fixed-rate mortgages increased from 3.35% in early May to 4.46% in June. Home prices rose 18% between January and May, according to Redfin.
Consequently, the number of customers touring homes fell 1.9% from May to June, compared to a 1.5% increase between May and June in 2012. Additionally, home offers decreased 5.0% from May to June, a slightly larger decline than last year's 3.2% drop.