Mortgages rates have hit the lowest point since April 2023, data shows, as recession fears reach the housing market.
Real estate company Redfin said in a report published Thursday that mortgage rates hit a daily average of 6.34 percent earlier this week. The company cited the recent underperforming jobs report and resulting “recession jitters” as a key factor behind the decline.
The median home sale price has also been on a downward trajectory, hitting $389,750 in the four-week period that ended Sunday. The company said that’s more than $6,000 lower than the all-time high seen last month.
“While that’s a typical seasonal decline, the year-over-year increase of 3.2 percent is the smallest in nine months, indicating that price growth has eased slightly,” the company noted.
The report found that pending sales were down 6.7 percent compared to last year, though it also acknowledged signs that could turn that around as mortgage-purchase applications see an uptick, as well as interest in home tours.
“Many of the buyers I’m working with are excited because they’ve been casually house hunting for a year, waiting for rates to come down before they make an offer. Now a lot of those buyers want to get in now, before rates get too low and cause more competition,” Redfin Premier agent Shoshana Godwin said in a statement.
“One of my listings, which went on the market last week, had over 100 parties come through and received nine offers,” Godwin added. “Buyers are securing lower rates than they were a few months ago, but costs are still high enough that buyers are picky. If they’re going to have a high monthly payment, they want a move-in ready home so they don’t have to pay for upgrades.”