Homebuying demand has reached near its highest level since early spring, supported by declining mortgage rates, according to Redfin’s latest report. Mortgage rates fell to an average of 6.69%, down from 6.84% two weeks ago, reducing the average homebuyer’s monthly payment to $2,527, the lowest in over two months. This has encouraged a resurgence in market activity, as noted by Redfin’s Homebuyer Demand Index, which rose 8% year over year. Pending sales also increased by 4.1% during the four weeks ending December 8, with mortgage-purchase applications jumping 20% compared to a month prior, as reported by Redfin.
The reduced financial uncertainty following the presidential election and buyers’ adaptation to higher interest rates have driven this rebound. Sellers are also responding, with new listings rising by 7.9% year over year, marking the largest increase since June. Many sellers aim to capitalize on heightened demand, creating a dynamic marketplace amid stabilizing rates.
