Redfin Reports Buyers Are Coming Back: Mortgage Demand Shoots Up, Home Tours Hit Highest Level Since May
Mortgage-rate locks rose
The surge in mortgage-rate locks comes five days after the Fed cut interest rates for the first time in four years. It’s worth noting that the surge in mortgage-rate locks may overstate the increase in mortgage demand, as it could be exacerbated by buyers who had already decided to purchase a home but were waiting to lock in a rate until after the Fed meeting.
Still, there are other indicators that demand is improving. Mortgage-purchase applications are up more than
News of the Fed’s historic interest-rate cut is the main factor bringing home buyers off the sidelines. Mortgage rates and housing costs had been declining meaningfully for several weeks before the rate cut, but before this week it hadn’t led to an uptick in demand. Many house hunters had been waiting for the rate cut to actually happen to get serious about buying, and now they have, even though mortgage rates didn’t fall further after the rate cut than they had in the week leading up to it.
Improving affordability is also, of course, a major factor bringing buyers back. The median monthly housing payment is down
“One new client decided to start their home search last Thursday because of the Fed’s rate cuts on Wednesday,” said Andrew
Declining mortgage rates and the Fed’s rate cut are also leading to fresh supply. New listings of homes for sale are up
For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.
Indicators of homebuying demand and activity |
||||
|
Value (if applicable) |
Recent change |
Year-over-year change |
Source |
Daily average 30-year fixed mortgage rate |
|
Near lowest level since February 2023 |
Down from |
Mortgage News Daily |
Weekly average 30-year fixed mortgage rate |
|
Lowest level since February 2023 |
Down from |
Freddie Mac |
Mortgage-purchase applications (seasonally adjusted) |
|
Increased |
Up |
Mortgage Bankers Association |
Redfin Homebuyer Demand Index (seasonally adjusted) |
|
Highest level since May; up (as of week ending Sept. 22) |
Up
First increase since the 4 weeks ending Oct. 22, 2023 |
Redfin Homebuyer Demand Index a measure of tours and other home buying services from Redfin agents |
Touring activity |
|
Up
|
At this time last year, it was down |
ShowingTime, a home touring technology company |
Google searches for “home for sale” |
|
Up |
Down
|
Google Trends |
Key housing-market data
Redfin’s national metrics include data from 400+ |
|||
|
Four weeks ending Sept. 22, 2024 |
Year-over-year change |
Notes |
Median sale price |
|
|
Biggest increase in 2 months |
Median asking price |
|
|
Biggest increase since January |
Median monthly mortgage payment |
|
- |
Biggest decline since May 2020
Lowest level since January, with the exception of the prior 4-week period
|
Pending sales |
76,606 |
- |
Smallest decline in 5 weeks |
New listings |
90,066 |
|
Biggest increase in 3 months |
Active listings |
1,022,917 |
|
Smallest increase since April |
Months of supply |
4.1 |
+0.9 pts. |
Highest level since February
4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions. |
Share of homes off market in two weeks |
|
Down from |
|
Median days on market |
38 |
+7 days |
|
Share of homes sold above list price |
|
Down from |
|
Average sale-to-list price ratio |
|
-0.5 pts. |
|
Metro-level highlights: Four weeks ending Sept. 22, 2024
Redfin’s metro-level data includes the 50 most populous |
|||
|
Metros with biggest year-over-year increases |
Metros with biggest year-over-year decreases |
Notes |
Median sale price |
|
|
Declined in 8 metros |
Pending sales |
|
|
Increased in 23 metros |
New listings |
|
|
Declined in 8 metros |
To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-homebuyers-are-back-mortgage-rate-locks
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926552627/en/
Redfin Journalist Services:
Tana Kelley
press@redfin.com
Source: Redfin