Menu
Washingtoner
  • Home
  • Business
  • Real Estate
  • Technology
  • Home
  • Pets
  • Security
  • Shipping
  • Health
Washingtoner

Redfin Reports Demand For Mortgages Ticks Up As Rates Drop Amid Banking Turmoil
Washingtoner/10211644

Trending...
  • InventHelp Inventor Develops New Accessory for Fishermen (TGR-242)
  • Tampa-Based Digital Marketing Agency Launches New Website to Help Local Businesses Grow Online
  • myb.day Launches New Birthday Gift Shop Filled With Personalized Surprises
SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — Some homebuyers are returning to the market as mortgage rates decline from the four-month high they reached last week, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Daily average mortgage rates dropped from 7% to about 6.5% over the weekend in the wake of Silicon Valley Bank's collapse. U.S. home prices also fell, dropping 1.8% year over year during the four weeks ending March 12, the biggest decline in over a decade.

Sidelined buyers reacted quickly: Bay Equity, Redfin's mortgage-lending company, locked a rate on more loans on March 10 than any other day so far this year. Overall, U.S. mortgage-purchase applications increased 7% from the week before during the week ending March 10.

But overall homebuying demand remains tepid, especially compared with the same period last year. That's largely because housing payments are still near historic highs: The typical homebuyer's monthly mortgage payment is $2,556, down marginally from last week's record high but up 24% from a year ago. Pending home sales are down 17% year over year, the biggest decline in six weeks. Demand is also limited by low supply; new listings of homes for sale posted their biggest annual drop in nearly three months.

"Buyers pounced when rates fell because they're so volatile right now, which shows that there are plenty of people waiting in the wings for the right time to enter the market. Where mortgage rates go from here largely depends on how the Fed reacts to chaos in the banking industry in the U.S. and abroad, alongside stubbornly high inflation," said Redfin Economics Research Lead Chen Zhao. "The Fed's goal at its meeting next week is to achieve a balancing act: Fight inflation while keeping the banking system intact. Even though the European Central Bank hiked interest rates more than expected this morning, it's unlikely the Fed will follow suit. Instead, we expect them to either raise rates modestly or press pause for the time being, the latter of which would send mortgage rates down and bring back many sidelined buyers and sellers."

While the unrest in the banking system may lower rates and bring back some buyers in most of the country, it's likely to further spook buyers in certain areas. Housing markets in the Bay Area and New York, home to the three regional banks that have tumbled over the last week—along with many tech workers who have either been laid off or are worried about being laid off—are already feeling the pain.

More on Washingtoner
  • ScreenPoints Puts Film Investors in the Credits—and in the Money With New FinTech Platform
  • Pathways to Adulthood Conference May 17 at Melville Marriott Honoring NYS Assembly Member Jodi Giglio, Suffolk County Legislator Nick Caracappa
  • Adster Techologies awarded US Patent for breakthrough innovation in reducing latency in Ad Serving
  • Robert Fabbio Inducted into the Austin Technology Council Hall of Fame
  • Cybersecurity is Protecting Your Personal Information and Your Portfolio

"Some buyers are canceling their contracts or bowing out of their home search because they work in tech and they're worried about losing their jobs," said Bay Area Redfin manager Shelley Rocha. "The surge in tech layoffs was already causing jitters, and now the bank failures are adding to buyers' nerves."

Leading indicators of homebuying activity:
  • For the week ending March 16, average 30-year fixed mortgage rates dropped to 6.6%, the first decline after five straight weeks of increases. The daily average was 6.54% on March 16.
  • Mortgage-purchase applications during the week ending March 10 increased 7% from a week earlier, seasonally adjusted. Purchase applications were down 38% from a year earlier.
  • The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other homebuying services from Redfin agents—was essentially flat from a week earlier (down -0.8%) during the week ending March 12. It was down 30% from a year earlier.
  • Google searches for "homes for sale" were up about 40% from the trough they hit in December during the week ending March 11, but down about 14% from a year earlier.
  • Touring activity as of March 11 was up about 19% from the start of the year, compared with a 22% increase at the same time last year, according to home tour technology company ShowingTime.

Key housing market takeaways for 400+ U.S. metro areas:

Unless otherwise noted, this data covers the four-week period ending March 12. Redfin's weekly housing market data goes back through 2015.
  • The median home sale price was $355,668, down 1.8% from a year earlier. That's the biggest decline in at least a decade, according to Redfin's monthly dataset, which goes back through 2012.
  • Median sale prices fell in 24 of the 50 most populous U.S. metros, with the biggest drops in northern California. San Jose, CA (-17.2% YoY) experienced the biggest decline, followed by Austin, TX (-13%), San Francisco (-11%), Oakland, CA (-10.9%) and Sacramento, CA (-8.6%). That's the biggest sale-price drop since at least 2015 for San Jose, Austin and Sacramento.
  • Sale prices increased most in West Palm Beach, FL (12.7%), Milwaukee (9%), Fort Lauderdale, FL (7.2%), Virginia Beach, VA (6.9%) and Miami (6.8%).
  • The median asking price of newly listed homes was $389,234, up 1.3% year over year.
  • The monthly mortgage payment on the median-asking-price home was $2,556 at a 6.6% mortgage rate, the current weekly average. Monthly mortgage payments are up 24% ($499) from a year ago.
  • Pending home sales were down 17.1% year over year.
  • Pending home sales fell in all 50 of the most populous U.S. metros. They fell most in Las Vegas (-53.5% YoY), Portland, OR (-48%), Sacramento (-47.8%), Riverside, CA (-45.9%), and Seattle (-44.1%).
  • New listings of homes for sale fell 22.1% year over year, the biggest decline in nearly three months.
  • New listings declined in all but one of the 50 of the most populous U.S. metros, with the biggest declines in Milwaukee (-65% YoY), Sacramento (-48.1%), Oakland (-45.9%), San Francisco (-42.6%) and San Jose (-41.8%). They increased 2.6% in Nashville.
  • Active listings (the number of homes listed for sale at any point during the period) were up 16.5% from a year earlier, the smallest increase in more than three months.
  • Months of supply—a measure of the balance between supply and demand, calculated by the number of months it would take for the current inventory to sell at the current sales pace—was 3 months, down from 4 months a month earlier and up from 1.9 months a year earlier.
  • 46% of homes that went under contract had an accepted offer within the first two weeks on the market, the highest level since June, but down from 53% a year earlier.
  • Homes that sold were on the market for a median of 46 days. That's up from 27 days a year earlier and the record low of 18 days set in May.
  • 24% of homes sold above their final list price, down from 45% a year earlier.
  • On average, 4.9% of homes for sale each week had a price drop, up from 2% a year earlier.
  • The average sale-to-list price ratio, which measures how close homes are selling to their final asking prices, was 98.3%, the highest level in more than three months but down from 101.2% a year earlier.

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-mortgage-rates-drop-demand-ticks-up

More on Washingtoner
  • L2 Aviation Celebrates Grand Opening of New Facility at Cincinnati/Northern Kentucky International Airport (CVG)
  • Spokane: Flags Lowered for Justice Owens
  • Managing Summer Staffing Surges with Confidence: Why Name Badges Are a Must for Seasonal Success
  • Visa Named Title Sponsor of Ascending Athletes' Business Owners Summits for NFL Entrepreneurs
  • Space Resources Company Interlune Unveils Full-Scale Prototype of Excavator for Harvesting Helium-3 from the Moon

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

Contacts

Redfin Journalist Services:
Kenneth Applewhaite, 206-588-6863
press@redfin.com
Filed Under: Business

Show All News | Report Violation

0 Comments
1000 characters max.

Latest on Washingtoner
  • NASDAQ Uplisting for Higher Market Exposure and Wide Corporate Benefits to AI Boosted Marketing Company On Track Towards $1 Billion Revenue by 2027
  • Congressional Men's Health Caucus Shows Bipartisan Consensus and Focus on Prevention, Mental Health, and Closing the Lifespan Gap
  • DuoKey, Axiomtek and Blue Edge Network Partner to Enhance Smart Cities with Privacy-Preserving Urban Safeguarding and Fleet Management
  • PNNL's Grid Storage Launchpad honored with 2025 BCI Innovation Award
  • Austin Keen Joins WakeFX RopePal as Official Brand Ambassador
  • Bonelli Systems Expands Managed IT Services Nationwide, Leveraging Microsoft Azure Expertise
  • $4.3 Million Patent Application Waiver Fee Granted by FDA on New Drug Application Fee for Treatment Addressing Suicidal Depression & PTSD: NRX Pharma
  • Whistleblower Claims Dental Patient Deaths Likely Due to Book Ban
  • xREnergy up as much as +3,094,634% on first day listed on the XRP Ledger. Ticker : $XRE
  • Psychiatry's Legacy of Racism and Coercion Highlighted in Restraint Deaths
  • New Book 'Cybersecurity Leadership' Guides SME Leaders to Make Smart, Strategic Security Decisions
  • "Stop scrolling and start watching" - Beloved film recommendation site Criticker gets a major makeover
  • Green Energy Solar Expands with New Offices in Port St. Lucie, West Palm Beach, and Orlando
  • IGT PlaySports Introduces World-Class Retail Sports Betting to Silver Reef Casino Resort
  • Events by Dubsdread Expands Services to The Venue at Lake Lily
  • London Gala Emphasizes Trade, FDI and Ongoing Cooperation
  • Sahit Muja Launches Trillion-Dollar Green Revolution with 10 Groundbreaking Cryptos
  • Free and Low-Cost Dental Care Now Available in London Through the Canadian Dental Care Plan (CDCP)
  • Garden State Gay Socials Turns One: 1st Birthday Celebration for Gay Men Who Want Real Connection
  • Sea Fox® 368X "Extreme Edition" by Black Label Marine Group Celebrates 5 Years of the Commander Legacy
_catLbl0 _catLbl1

Popular on Washingtoner

  • 11th annual Florida Blueberry Festival April 26 & 27, 2025 - 141
  • HR Tech Awards Program Celebrates 6th Year: Showcases Top Hiring, Talent, and HR Technologies - 122
  • People & Stories/Gente y Cuentos Announces New Board Leadership & Corporate Partnership Initiative - 114
  • Mission 3A Establishes Healthcare Advisory Board with Addition of Industry Leaders Patrick Fisher, Kevin Cordell, and Dr. Greg Berlet - 111
  • PebblePad Welcomes Justin Reilly as New CEO to Drive Innovation and Growth - 109
  • American Mensa Welcomes 7-Year-Old Savannah Boy - 109
  • Village Vapes and Cooking 4 Autism Announce Inaugural Partnership at MEGA 420 EVENT
  • Axiros Confirms Continued Compliance with ISO/IEC 27001:2022 After Surveillance Audit
  • S2C and Andes Technology Announce FPGA-Based Prototyping Partnership to Accelerate Advanced RISC-V SoC Development
  • The Great Junk Hunt Returns to Puyallup – A Vintage Shopping Experience Like No Other!

Similar on Washingtoner

  • NBA Champion Lamar Odom Launches Anti-Addiction Meme Coin, Ushering in a Disruptive Innovation in Web3
  • Beaches and Big Cities Remain the Top Travel Destination for American Summer Travelers
  • Cybersecurity is Protecting Your Personal Information and Your Portfolio
  • Space Resources Company Interlune Unveils Full-Scale Prototype of Excavator for Harvesting Helium-3 from the Moon
  • The Paris Court of International Arbitration Elects Dr. John J. Maalouf as its New President
  • $56.7 Million Announced in Q1 2025 with Revenue Growth and Progress Toward NASDAQ Uplisting for AI Marketing Company: IQSTEL, Inc. Stock Symbol: IQSTD
  • SAVVY MINING raised $500 million and launched BTC.XRP.DOGE cloud mining, increasing investors' returns by 30%
  • Ditch Micromanagement: New Leadership Book for Results-Driven, Accountability-Based Teams
  • Jay Tapp was named Managing Director in British Columbia
  • 20 Patents Issued Worldwide, Cementing Company Leadership. First Ever Cable-Free 12-Lead ECG: HeartBeam, Inc. (Stock Symbol: BEAT)
Copyright © 2025 washingtoner.com | Terms of Service | Privacy Policy | Contact Us | Contribute