\nU.S. pending home sales fell 2.9% year over year during the four weeks ending January 18, the smallest decline in over a month, as mortgage rates declined. That\u2019s according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p>\n
\nNew listings followed a similar pattern as pending sales: They dipped 1.6% year over year, the smallest decline since November. Mortgage-purchase applications rose 5% week over week to their highest level in three years.<\/p>\n
\nThe slight improvements in homebuying demand and home listings are largely the result of falling mortgage rates. The weekly average mortgage rate dropped to a three-year low of 6.06% last week after President Trump ordered $200 billion<\/a> in mortgage bond purchases. Lower mortgage rates have brought the median U.S. monthly housing payment down to $2,441, a 6.3% decline from this time last year. (The daily average rate has increased from a 3-year low of about 6% in early January to 6.2% this week.)<\/p>\n \nEven though homebuying and selling activity improved, the homes that are selling are taking a long time to find buyers. The typical home that sold spent 61 days on the market before going under contract, a week longer than last year. That\u2019s largely because it\u2019s a buyer\u2019s market<\/a>, with home sellers outnumbering buyers by a record margin; many buyers are taking their time with both house hunting and negotiations.<\/p>\n \n\u201cBuyers have much more power than they\u2019ve had over the past few years,\u201d said Ben Ambroch<\/a>, a Redfin Premier<\/a> agent in Milwaukee<\/a>. \u201cA lot of buyers are giving up a 3% mortgage rate for a 6% rate, so they have high standards for their new home. Buyers are negotiating prices and asking for repairs based on inspections. Sellers are more willing to compromise because listings have been sitting on the market longer; the sellers who need to move are eager to get a deal done.\u201d<\/p>\n \nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.<\/p>\n Leading indicators<\/b><\/p>\n