The typical U.S. home sold for roughly $352,000 during the four weeks ending December 18, down 10% from the June peak of $391,000, and during the same period, average mortgage rates dropped to 6.27%, cutting nearly $300 off of monthly housing payments since surging to a peak 7% in late October. Not only is housing affordability improving, but homes are also lingering on the market for 39 days before going under contract, creating the largest supply increase on record, Redfin reports.
While more favorable homebuying conditions have resulted in a 4.6% monthly rise in mortgage-purchase applications and a 6.5% increase in Redfin’s Homebuyer Demand Index, a resurgence of demand hasn’t yet translated to more home sales.
“Quite a few buyers have come out of the woodwork in the last few weeks as rates have fallen. Many people who were outbid on multiple homes during the buying boom want to seize this moment because they can take their time touring homes and negotiate on price and terms with sellers,” said Seattle Redfin agent Shoshana Godwin. “Today’s market isn’t nearly as hot as it was earlier this year, and I don’t expect it to return to those levels. But it’s getting warm.”
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