RDFN Redfin Corporation

Monthly housing payments are falling as mortgage rates decline, but many house hunters remain on the sidelines, with pending sales posting their biggest drop in nearly nine months

(NASDAQ: RDFN) — The typical U.S. homebuyer’s monthly housing payment was $2,671 during the four weeks ending July 21, the lowest level in four months and down $166 from the record high set at the end of April. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Housing payments are falling because mortgage rates are falling: The weekly average mortgage rate has declined to 6.77%, its lowest level since March, as inflation cools.

Buyers also have more homes to choose from: New listings are up 6.1% year over year, and more listings are growing stale, giving house hunters the opportunity to negotiate. But even though housing payments are declining and inventory is improving, homebuyers remain hesitant. Pending home sales are down 5.7% year over year, the biggest decline in nearly nine months, and mortgage-purchase applications are down 15% (purchase applications are down 4% week over week).

Many would-be buyers are still waiting on the sidelines largely because even though mortgage rates are coming down a bit, home-sale prices are just shy of their record all-time high. Additionally, Redfin agents say some house hunters are waiting until after the upcoming presidential election to buy because they don’t want to make a large purchase in the midst of political and economic uncertainty.

“I’m working with several buyers who are waiting for the election before they make a move,” said Matthew Purdy, a Redfin Premier agent in northern Colorado. “Some of them say they’ll only buy a home if their candidate wins. Others are waiting because they feel the economy and housing market are shaky, and hope it will improve after the election. I am working with a few foreign buyers who are wary about investing any more money in U.S. real estate before they see who takes office.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

6.9% (July 24)

Near lowest level since February; down from 7.14% 3 weeks earlier

Unchanged from 6.9%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.77% (week ending July 18)

Down from 6.89% a week earlier

Essentially unchanged from 6.78%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Decreased 4% from a week earlier (as of week ending July 19)

Down 15%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Essentially unchanged from a month earlier (as of week ending July 21)

Down 16%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Touring activity

 

Up 19% from the start of the year (as of July 22)

At this time last year, it was up 15% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Up 12% from a month earlier (as of July 22)

Down 15%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending July 21, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending July 21, 2024

Year-over-year change

Notes

Median sale price

$395,500

4.4%

$1,000 below all-time high set during the 4 weeks ending July 7

Median asking price

$401,250

4.9%

 

Median monthly mortgage payment

$2,671 at a 6.77% mortgage rate

4.6%

Lowest level since March; $166 below all-time high set during the 4 weeks ending April 28

Pending sales

81,224

-5.7%

Biggest decline in nearly 9 months

New listings

92,972

6.1%

 

Active listings

985,303

18.7%

Smallest increase in 3 months

Months of supply

3.6

+0.7 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

38.3%

Down from 44%

 

Median days on market

33

+5 days

 

Share of homes sold above list price

31.2%

Down from 36%

 

Share of homes with a price drop

6.7%

+1.8 pts.

Highest level on record

Average sale-to-list price ratio

99.5%

-0.5 pts.

 

Metro-level highlights: Four weeks ending July 21, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Detroit (15.4%)

Providence, RI (14.3%)

New Brunswick, NJ (13.2%)

Newark, NJ (13%)

Milwaukee (12.4%)

Austin, TX (-3.6%)

Dallas (-1.2%)

 

 

 

 

 

 

Declined in 2 metros

Pending sales

Newark, NJ (7.1%)

San Jose, CA (4%)

Boston (3.1%)

Cincinnati, OH (2.3%)

San Francisco (1.7%)

Los Angeles (1.4%)

Columbus, OH (0.5%)

Houston (-28%)

Minneapolis (-16.1%)

West Palm Beach, FL (-15.7%)

Virginia Beach, VA (-14.3%)

Atlanta (-13.6%)

 

Increased in 7 metros

New listings

San Jose, CA (25.8%)

Las Vegas (20.6%)

Miami (17.1%)

Phoenix (16.2%)

Jacksonville, FL (16.1%)

Atlanta (-14.2%)

Houston (-10.5%)

Detroit (-4%)

Chicago (-3.1%)

Warren, MI (-2.5%)

Declined in 8 metros

To view the full report, including charts please visit:

https://www.redfin.com/news/housing-market-update-monthly-payment-mortgage-rates-drop

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. 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 have our renovations crew fix it up 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 $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

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 press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725423938/en/

Contact Redfin Redfin Journalist Services: Kenneth Applewhaite press@redfin.com