Redfin Reports Mortgage Rates and Housing Payments Drop to Lowest Level Since Spring

In additional good news for the housing market, new listings are rising and mortgage-purchase applications are up nearly 20% from their November low point

SEATTLE–(BUSINESS WIRE)–#housingmarket–(NASDAQ: RDFN) —Daily average mortgage rates have fallen to 6.82% and housing payments have dropped to their lowest level since April. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This marks the first time daily rates have dipped below 7% since July.

Rates dropped after the Fed brought good news to homebuyers at its December 13 meeting, indicating they’re on a path toward lowering interest rates more and sooner than expected. That’s another piece of evidence that mortgage rates are likely to drop into the mid-6% range in 2024, consistent with Redfin’s housing-market predictions.

Mortgage payments are at their lowest level in eight months. Even before the Fed meeting, mortgage rates had declined substantially from their peak, bringing homebuyers some relief. The median U.S. housing payment is $2,503 as of the four weeks ending December 10, down $233 from October’s record high and its lowest level since April.

Declining costs are bringing homebuyers off the sidelines. Mortgage-purchase applications are up 19% from the three-decade low they dropped to at the start of November. And Redfin’s Homebuyer Demand Index—measure of requests for tours and other homebuying services from Redfin agents—is up 3% from a month ago.

Prices and new listings rise. The median U.S. home-sale price is up 4.5% year over year, the biggest increase since October 2022. Prices are rising because demand is outpacing supply. Even though new listings are up 8% year over year—the biggest increase since July 2021—the total number of homes for sale is still down 5%.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-mortgage-rates-fall-below-7

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country’s #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we’ve saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.

Contacts

Contact Redfin

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

press@redfin.com