Redfin Reports U.S. Home Prices Hit Another Record High, But Mortgage Rates Are Starting to Decline—Which Could Give Buyers Relief
Daily average mortgage rates dropped to their lowest level in three months on Wednesday, after the May CPI report showed that inflation is continuing to cool. That could bring back some demand; for now, home sales are still declining.
There are signs that home-price growth could ease soon. Asking prices have leveled off, and 6.5% of home sellers are cutting their asking price, on average, the highest share since
Meanwhile, the typical homebuyer’s monthly housing payment dipped to
Mortgage rates are likely to decline further over the summer, which would keep monthly housing costs from spiraling up again. Daily average mortgage rates dropped to their lowest level in three months on
“The latest inflation report is good for homebuyers because it has already sent mortgage rates down, though this week’s Fed meeting will temper mortgage-rate declines,” said
For now, high costs are keeping some prospective homebuyers on the sidelines. Pending home sales are down 3.5% year over year, the biggest decline in three months, and Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is down 18%, sitting at its lowest level since February. But there is one encouraging sign for demand: Mortgage-purchase applications are up 9% week over week. On the selling side, new listings are up 7.8% year over year, but they’re below typical springtime levels, which is why home prices keep rising despite tepid demand.
For more on Redfin economists’ takes on the housing market, please visit Redfin’s “ From Our Economists ” page.
Leading indicators
Indicators of homebuying demand and activity |
||||
|
Value (if applicable) |
Recent change |
Year-over-year change |
Source |
Daily average 30-year fixed mortgage rate |
6.98% ( |
Up from 7.03% a week earlier, but down from a 5-month high of 7.52% 5 weeks earlier |
Up from 6.94% |
|
Weekly average 30-year fixed mortgage rate |
6.99% (week ending |
Down slightly from 7.03% a week earlier; down from a 5-month high of 7.22% a month earlier |
Up from 6.71% |
Freddie Mac |
Mortgage-purchase applications (seasonally adjusted) |
|
Increased 9% from a week earlier (as of week ending |
Down 12% |
|
Redfin Homebuyer Demand Index (seasonally adjusted) |
|
Down 2% from a month earlier (as of week ending |
Down 18% |
Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents |
Touring activity |
|
Up 28% from the start of the year (as of |
At this time last year, it was up 22% from the start of 2023 |
ShowingTime, a home touring technology company |
Google searches for “home for sale” |
|
Unchanged from a month earlier (as of |
Down 16% |
Google Trends |
Key housing-market data
Redfin’s national metrics include data from 400+ |
|||
|
Four weeks ending |
Year-over-year change |
Notes |
Median sale price |
|
4.4% |
All-time high; biggest increase in about 3 months (tied with increase during 4 weeks ending |
Median asking price |
|
6% |
|
Median monthly mortgage payment |
|
8.6% |
|
Pending sales |
86,604 |
-3.5% |
Biggest decline in 3 months |
New listings |
100,411 |
7.8% |
|
Active listings |
939,839 |
16.7% |
|
Months of supply |
3.2 |
+0.6 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 |
42.4% |
Down from 48% |
|
Median days on market |
31 |
+3 days |
|
Share of homes sold above list price |
32.1% |
Down from 35% |
|
Share of homes with a price drop |
6.5% |
+2 pts. |
Highest level since |
Average sale-to-list price ratio |
99.6% |
-0.3 pts. |
|
Metro-level highlights: Four weeks ending
Redfin’s metro-level data includes the 50 most populous |
|||
|
Metros with biggest year-over-year increases |
Metros with biggest year-over-year decreases |
Notes |
Median sale price |
|
|
Declined in 4 metros |
Pending sales |
|
|
Increased in 13 metros |
New listings |
|
|
Declined in 7 metros |
To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-record-high-mortgage-rates-decline
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
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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
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Source: Redfin