Listing activity and homes going under contract ticked up last month nationwide, the latest sign that some of the paralysis brought on by the rapid jump in mortgage rates in recent years is easing.
In September, the biggest gains came in pricy locales like Seattle, Los Angeles, and San Jose, Calif. In expensive parts of the country, any mortgage rate savings can help spark buyer interest, said Tim Nguyen, a real estate agent in Santa Clara, Calif., where the median home lists for more than $1.4 million. Average interest rates this year dropped more than a percentage point from as high as 7.22% in May to closer to 6% last month.
Nationwide, Redfin calculated that pending sales rose 3.2% year over year for the four weeks through Oct. 13. It was the biggest jump in more than three years. Homebuying is a heavily seasonal activity. Zillow deemed September as something of a “last call” for the market before sales slow down for the winter. And in recent weeks,“We’re making strides in the right direction, but they’re pretty small steps,” said Danielle Hale, chief economist at Realtor.com. “I think it’s still going to be a while before we stop talking about the mortgage rate lock-in effect.