Spring Thaw: Pending Home Sales Up for the First Time in 14 Months!
Pending home sales increased for the first time since Spring 2022, signaling that we're now passed the lowest point in home sales. It also means that potential homebuyers need to prepare for mortgage rate's "new normal," which are likely to be in the 5.5 to 6.5 percent range, according to a recent report from the National Association of Realtors.
The report also mentioned that job gains would steadily become a vital driving force in home sales.
Redfin Economics Research Lead Chen Zhao supported this idea, commenting that "homebuyers are starting to feel more confident as mortgage rates tick down closer to 6 percent than 7 percent and the overall economy chugs along with surprising resilience, especially in the labor market."
"When rates were seesawing up and down in the fall, many buyers dropped out because they could wake up the day after finding their dream home to a three-digit increase in their potential monthly payment. Now they have a better sense of how far their budget will go in which neighborhoods and which homes they can afford."