While buyers now have slightly more options, housing costs remain historically high. The typical mortgage payment is $2,671, just $47 below last October’s record level. These high costs have contributed to an 8% decline in pending sales (the biggest drop in five months) and a fourth consecutive week of declining mortgage applications.
Despite these challenges, more buyers are re-entering the market, drawn by the increased number of homes. Redfin’s Homebuyer Demand Index, which tracks requests for tours and agent services, is up 10% from a month ago, reaching its highest level since last September.
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“House hunters are out there, and competition picks up every time mortgage rates decline a bit,” said Brynn Rea, a Redfin Premier agent in Spokane, WA. “I’m telling buyers who can afford it to look now while they have more breathing room and less competition. They have a good chance of negotiating the price down or getting some concessions from the seller, which could make up for getting a 7% mortgage rate instead of 6%.”
The report suggests that pending sales could improve in the coming months if interest rates stabilize and new listings continue to increase.
Source: mpamag.com