Redfin economists believe demand and listings would be rising more if not for harsher-than-usual winter weather as 2024 shapes up to be more active than 2023 for homebuyers and sellers, with mortgage applications and new listings rising.
According to Redfin, Homebuyers and sellers are gradually becoming more active as the calendar flips further into 2024. Mortgage-purchase applications are up 8% from a month ago, and Redfin agents report that lower mortgage rates are piquing buyers’ interest. On the sell side, new listings increased 8% year over year during the four weeks ending January 14.
Buyers and sellers are making moves largely because mortgage rates are holding steady in the mid-6% range, down from 8% in October. The typical U.S. homebuyer’s monthly housing payment is $2,456 with this week’s average rate; while that’s up 10% year over year, it’s down from October’s record high of over $2,700.
Redfin economists say buyer demand and listings would likely be picking up more if not for the severe winter weather much of the country experienced over the last week. “We expected both buyers and sellers to react more strongly to last month’s drop in mortgage rates once the holidays passed, but frigid weather and snowstorms have halted a lot of buying and selling plans,” said Redfin Economic Research Lead Chen Zhao. “As long as rates don’t shoot up, we expect the market to pick up as the spring season approaches.”