\nU.S. pending home sales ticked up 0.7% year over year during the four weeks ending November 2, the smallest increase in four months, according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.\n<\/p>\n
\nHomes are also taking longer to sell: The typical home that sold in October went under contract in 48 days, the longest span for that month since 2019.\n<\/p>\n
\nHome sales are slow despite declining mortgage rates. The weekly average mortgage rate has fallen to 6.17%, its lowest level in a year, pushing the median monthly housing payment down to $2,508, down 2.1% from a year ago.\n<\/p>\n
\nThere are a few reasons homebuyers aren\u2019t biting on lower rates. Sale prices <\/i>are still rising, posting their biggest increase in six months, and many house hunters are hesitant to make a major purchase amid widespread economic uncertainty. Additionally, mortgage rates have already started ticking back up as markets respond to the Fed signaling<\/a> that a December rate cut is far from guaranteed.\n<\/p>\n \n\u201cMost house hunters aren\u2019t flat-out stopping their search; instead, they\u2019re being picky and looking for the perfect home,\u201d said Rebecca Love, a Redfin Premier agent in Washington, D.C. \u201cBuyers are ultra-cautious with their funds because they\u2019re worried about interest rates, the economy, and potentially losing their job. If they\u2019re going to spend money, they want to check every box\u2014and at the same time, they want a good deal. That means searches are taking longer than usual.\u201d\n<\/p>\n \nOn the selling side, listings are holding steady. New listings are up 4% year over year, similar to the increases Redfin has seen over the last several weeks.\n<\/p>\n \nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.\n<\/p>\n Leading indicators<\/b><\/p>\n