Pending home sales in the U.S. decreased 26% Y/Y during the four weeks ended Jan. 22, marking the smallest slump in over three months, as the recent pullback in mortgage rates drive more buyers to the housing market, Redfin (NASDAQ:RDFN) reported Thursday.
In addition to easing mortgage rates, mortgage applications jumped 28% since November 2022 and Redfin (RDFN) home-tour requests are also ascending, signaling the increase in early-stage homebuyer demand is starting to translate into sales.
Redfin’s (RDFN) seasonally adjusted Homebuyer Demand Index — a measure of requests for home tours and other homebuying services from Redfin agents — climbed 6% from a month ago during the four weeks ended Jan. 22.
“Homebuyers are starting to feel more confident as mortgage rates tick down closer to 6% than 7% and the overall economy chugs along with surprising resilience, especially in the labor market,” said Redfin Economics Research Lead Chen Zhao.
With the demand-supply dynamic still lopsided across the housing market, home prices are still elevated versus historical levels. In fact, the median home sold for $350K, up 1.1% from the year-ago period, representing the biggest increase in more than a month. Overall, home prices dipped in 17 of the most 50 populated metros.
Previously, (Dec. 28, 2022) the National Association of Realtors reported pending home sales took another hefty dip in November.