Redfin Reports Housing Payments Post Biggest Decline in 4 Years Ahead of Fed's Historic Rate Cut, Which Could Lure Buyers Off the Sidelines
Monthly housing payments have declined nearly
Mortgage applications are rising, but pending sales have yet to improve. Mortgage-purchase applications are up
There are several reasons sales haven’t yet picked up. Home prices are still rising, and Redfin agents report that some would-be buyers are waiting for mortgage rates to fall more, while other prospective buyers aren’t even aware that rates have started to fall. Aside from rate-related reasons, agents report many house hunters are confused about the new NAR rules and others are waiting until after the election.
“Buyers are holding their breath, watching interest rates. There’s pent-up energy, with people waiting for the right moment to buy a home–and it’s feeling like the dam is going to break soon,” said Kristin Sanchez, a Redfin Premier agent in
Inventory is piling up. The combination of rising inventory and slow sales is causing for-sale homes to pile up, and many listings are growing stale. There are roughly four months of supply available on the market, the most since February and up from just over three months last year. Months of supply is the length of time it would take for the existing supply of homes to be bought up at the current pace of sales; the higher the number, the more buyer-friendly the market.
Fed’s interest-rate cut may bring buyers off the sidelines. Demand may improve after yesterday’s interest-rate cut, with house hunters who had been waiting for the Fed to lower rates jumping into the market now that it has happened. Redfin economists note that mortgage rates are unlikely to fall much further in the next few weeks because markets had already priced in expectations of an aggressive rate cut, and the Fed is projecting only gradual cuts from here on out. But mortgage rates may swing up or down before the end of the year, depending on upcoming inflation and jobs reports.
For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.
Indicators of homebuying demand and activity |
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|
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 |
Down |
Mortgage Bankers Association |
Redfin Homebuyer Demand Index (seasonally adjusted) |
|
Essentially unchanged from a month earlier (as of week ending Sept. 15) |
Down |
Redfin Homebuyer Demand Index a measure of tours and other homebuying 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” |
|
Down |
Down
|
Google Trends |
Key housing-market data
Redfin’s national metrics include data from 400+ |
|||
|
Four weeks ending Sept. 15, 2024 |
Year-over-year change |
Notes |
Median sale price |
|
|
|
Median asking price |
|
|
|
Median monthly mortgage payment |
|
- |
Biggest decline since May 2020
Nearly |
Pending sales |
75,933 |
- |
|
New listings |
88,196 |
|
|
Active listings |
998,854 |
|
Smallest increase since April |
Months of supply |
3.9 |
+0.8 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 |
37 |
+6 days |
|
Share of homes sold above list price |
|
Down from |
|
Average sale-to-list price ratio |
|
-0.4 pts. |
|
Metro-level highlights: Four weeks ending Sept. 15, 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 9 metros |
Pending sales |
|
|
Increased in 15 metros |
New listings |
|
|
Declined in 12 metros |
To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-mortgage-rates-housing-payments-fall
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
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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/20240919958324/en/
Redfin Journalist Services:
Tana Kelley
press@redfin.com
Source: Redfin