Mortgage applications increased 2 percent from a week earlier, marking the fourth week of increases, while purchase applications rose 19 percent from a month earlier, according to data released Friday by Redfin.
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Homebuyers are returning to the market in droves as mortgage rates and home prices gradually tick down, according to new data released Friday by Redfin.
Mortgage applications increased in each of the past four weeks over a period ending March 26, according to the Redfin’s Homebuyer Demand Index, the brokerage’s in-house measure of buyer demand. Over the past month, the index jumped to its highest level since May 2022, indicating a surge of activity as the spring home buying season kicks off.
“My phone is ringing, and it’s usually first-time buyers or investors,” San Francisco Redfin agent Ali Mafi said in a statement. “First-time buyers are interested in looking at homes because prices have come down, though they’re still concerned about high mortgage rates. Investors who can pay in cash are honing in on luxury San Francisco condos because prices on those have dropped even more significantly than the overall market.”
While buyer activity is increasing month over month, home sales still sag below levels seen last spring. Pending home sales were down 21.1 percent year over year in February, but have increased monthly for three-consecutive months, according to data from the National Association of Realtors.
Existing-home sales also shot up in February, increasing by 14.5 percent after falling for 12 straight months. Sales remained 22.5 percent lower than 2022 levels, however.
The Redfin report found unequal distribution of price drops across the country due to extremely low inventory, with prices dropping in some parts of the…