Pending Existing Homes Sales Post Largest Increase in 3-years

Redfin reported on Thursday (10-10-24), that according to its data, in the four-week period ending on October 6th, U.S. pending home sales rose 2% from the same time period a year earlier. This is the largest increase in three years.

Demand picked up at earlier stages of the homebuying process, too. Redfin’s Homebuyer Demand Index–a measure of tours and other buying services from Redfin agents–sat near its highest level since May last week, and mortgage-purchase applications are up 8% month-over-month. New listings are also rising, with a 5.7% year-over-year uptick. But unlike the increase in pending sales, that’s a continuation of a trend; new listings have been increasing for nearly a year.

Redfin, however, cautions that the improvement in sales may slow in the coming weeks, as mortgage rates started rising last Friday, following a surprisingly strong jobs report. Daily average mortgage rates jumped to 6.62% on Monday from 6.26% last Thursday. Some buyers may back off due to rising rates, but not all of them: Mortgage rates are still significantly lower than they were a year ago–and lower than earlier this year–and the Fed is on track to continue cutting interest rates.