Decline in home prices and mortgage rates attracts buyers, supply an issue
New Redfin data shows that more potential homebuyers are taking the first steps at purchasing a house with its Homebuyer Demand Index hitting the highest level since May last year. The number of people requesting tours and other buying services jumped as home prices and mortgage rates continue to fall.
The median home sale price across the nation decreased for a sixth straight week now at $360,500. Over half of the nation’s 50 most populous metro areas saw price declines.
Mortgage rates, while still over double historic lows before the Federal Reserve began aggressive monetary tightening, dropped for a third week in a row with the average 30-year fixed mortgage rate at 6.32% for the week ending 30 March.
However, sales haven’t picked up hindered mainly by a lack of supply confronting would-be buyers. Many homeowners are reluctant to sell having locked in rock-bottom mortgage rates.