Record low mortgage rates helped push homebuyer demand past pre-pandemic levels for the week ending July 5. According to Redfin, home sales are up 2% on a seasonally adjusted basis, exceeding sales from January and February. The average 30-year fixed mortgage rate was down 3.03% for the week ending July 9, and mortgage purchase applications were about 15% above pre-pandemic levels. Unfortunately, new listings remain at pre-pandemic levels for the third consecutive week, continuing the housing market’s theme of low supply. The lack of new listings is another reason why potential sellers are reluctant to list their own homes.
“The industry is responding to an avalanche of applications for refinances and purchases.” said Rob Foos, a mortgage advisor with Redfin Mortgage in Boston. “A combination of rock-bottom rates plus pent-up purchase demand has resulted in the highest levels of purchase applications in about a decade.”
Several leading indicators suggest that home sales will continue to increase in the coming weeks; pending sales grew 10% from pre-pandemic levels on a seasonally adjusted basis and the Redfin home-buying demand index has hovered around 20% above the pre-pandemic levels for seven straight weeks. Mortgage purchase applications were also about 15% above pre-pandemic levels.