Could Homebuyers Be Headed Back to the Market?

It appears as though house hunters could be coming back to the marketplace. According to a recent analysis from online real estate brokerage Redfin, mortgage-purchase applications increased by 7% this week to their highest level since the start of February. This comes as mortgage rates dropped back down to their lowest point since mid-December. Additionally, listings of homes for sale are up 3.1% year-over-year. However, this does not necessarily mean that home sales have improved. While buyers are becoming more interested, pending home sales are still down 6.1% compared with the same time last year.

“Mortgage rates are coming down because the country’s economic outlook is getting stormier as investors worry about things like tariffs and a slightly weaker-than-expected job market,” said Redfin Economic Research Lead Chen Zhao. “Lower mortgage rates have brought some house hunters who were waiting for costs to come down off the sidelines. But they haven’t yet led to more sales because prospective buyers are still figuring out whether lower payments are enough to justify a home purchase in today’s uncertain economy. Many Americans are concerned about things like job security and a potential recession.” Read more