Prospective homebuyers appear to be checking back into the market after the passage of the presidential election andfrom the Federal Reserve in a welcome sign for the industry that is on track for another poor year with stubbornly high asking prices and mortgage rates.
While supply continues to be an issue in the final month-and-a-half of 2024, buyers may be starting to come back to check on the market. Redfin said Thursday that its Homebuyer Demand Index jumped in the weekend following the election to its highest rate in more than a year and that the number of people locking into mortgage rates doubled compared to a month ago.
The average rate on a 30-year, fixed-rate mortgage was 6.78% as of the week ending Nov. 14, which was a decline from the week prior and well below the levels of above 7% a year ago. Navigating mortgage rates has been difficult for the industry as many buyers are locked into rates around 3% from during the coronavirus pandemic and unwilling to give them up even if the trade-off is cashing in on massive equity gains to upgrade to another home.