Redfin Reports Early Stage Demand Picks Up as Mortgage Rates Fall to a Four-Month Low
(NASDAQ: RDFN) -More homebuyers are returning to the market, motivated by a decline in mortgage rates and a record share of listings with price drops, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
Redfin's Homebuyer Demand Index-a measure of requests for home tours and other home-buying services from Redfin agents-rose 7 points during the last week of July, and mortgage purchase applications rose for the first time in five weeks.
So far this rebound has not moved through to actual home sales. Pending sales in July posted their largest decline since May 2020. Home sellers are also reluctant to enter the market-new listings fell 11% from a year ago, the largest decline since June 2020.
"Homebuyers may catch a break this month as rates have come down nearly a point from the recent high on fears of a recession," said Redfin Deputy Chief Economist Taylor Marr. "There are deals to be had on some homes that have been sitting on the market with reduced prices. General economic uncertainty may continue to keep a lid on homebuyer demand and keep mortgage rates volatile, but the labor market remains a beacon of strength in the economy and the housing market in particular."
Leading indicators of homebuying activity:
Key housing market takeaways for 400+ U.S. mero areas:
Unless otherwise noted, this data covers the four-week period ending July 31. Redfin's weekly housing market data goes back through 2015.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-demand-picks-up-rates-below-5-pct/
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. 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 take an instant cash offer from Redfin or have our renovations crew fix up their home 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 $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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 [email protected]. To view Redfin's press center, click here.