The U.S. housing market is losing momentum as higher mortgage rates and affordability pressures continue to keep buyers cautious. New Realtor.com data shows pending home sales turned negative in August after eight consecutive months of annual growth, signaling that the summer housing recovery has begun to stall.

The slowdown is happening alongside a growing number of sellers cutting prices. About 20.4% of active listings received a price reduction in August, up from July and matching the level recorded a year earlier. The national median asking price also fell to $424,500, down 1.3% from a year ago.

For buyers, the shift could provide more negotiating power heading into the fall. Inventory was 3.6% higher than a year earlier, while homes took a median of 60 days to sell—three days longer than in July. More choices and longer marketing times give buyers greater ability to compare properties and negotiate on price or concessions.

But the market is not experiencing a broad price collapse. Instead, sellers are adjusting to a reality in which buyers are increasingly unwilling to stretch their budgets while mortgage rates remain around the mid-6% range.

The regional differences are significant. Price reductions were more common in the West and South, where roughly one in five listings received a cut, while the Northeast remained considerably tighter.

Heading into the fall, mortgage rates will remain a major factor. If borrowing costs decline, some sidelined buyers could return. If rates stay elevated, sellers may need to make additional concessions to attract offers.

The latest data suggests the housing market is becoming more balanced—not because buyers suddenly have cheap financing, but because sellers are increasingly having to compete for the buyers who remain.