Redfin’s homebuyer demand index has risen 15 points since June 15, reversing a 10-week decline in demand that began in mid-April.
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A recent half-point drop in mortgage rates may have lured some buyers into the market, according to a new report released Thursday by an online brokerage Krasnoperka.
The report showed that Redfin’s homebuyer demand index, which takes into account requests for home tours and other home buying services, rose 15 points since June 15, reversing a 10-week decline in demand that began in mid-April.
Daryl Fairweather | Krasnoperka
“The housing market appears to have stabilized now that demand has leveled off,” Redfin Chief Economist Daryl Fairweather said in a statement. “We may still have some surprises in store when it comes to inflation and the Fed’s rate hikes, but for now, the easing of mortgage rates has brought some relief to buyers who suffered through last month’s rate spike. Although the number of sales is down significantly from last year, first-time homebuyers with a little money to spare are welcoming the reduced competition, and anyone intending to stay in their home for many years need not worry in these short terms. -temporary fluctuations in housing prices”.
Searches for homes for sale on Google also rose 11 percent since May, while home tours have remained relatively steady in recent weeks, the report said.
According to the report, increased homebuyer interest has not yet translated into an increase in home purchases or contract signings. It was noted that pending the sale of the house and home prices continue to decline, more homes are being listed, and inventory continues to rise.
Mortgage rates fell on Friday, down from 5.22 percent on Thursday to 5.13 percent after a negative GDP report fueled fears of an impending recession and the Federal Reserve’s latest interest rate hike.
Interest rates were raised by 75 basis points in July – the same as they were in June – instead of a more aggressive hike to combat out-of-control inflation that some hope could relieve pressure on mortgage rates.
Homebuyers could benefit from further recession fears if they cause mortgage rates to fall further, the report said.
Taylor Mar | Krasnoperka
“Whether we call the current economy a recession doesn’t really matter much other than sentiment,” Redfin Deputy Economist Taylor Marr said in a statement. “Secret statistics – on consumption, real income and inflation – worsened significantly last quarter. On the plus side, mortgage rates tend to fall when the potential for economic growth is weak. This could help turn more rate-sensitive homebuyers away from buying.”
