U.S. pending home sales increased by 2% in the four weeks ending October 6, 2024, marking the biggest jump in three years. This uptick is driven by declining mortgage rates, which have lowered the average buyer’s housing payment to $2,526, the lowest since January. Demand indicators, such as Redfin’s Homebuyer Demand Index and mortgage-purchase applications, have also increased. New listings rose 5.7% year-over-year, continuing a trend seen over the past year.
However, mortgage rates jumped again after a strong jobs report, potentially slowing demand in the coming weeks. Despite this, some buyers remain active, encouraged by lower rates than last year and expectations of further Fed interest rate cuts.
In contrast, pending sales in coastal Florida, particularly in West Palm Beach, Tampa, and Miami, have declined due to Hurricane Helene and rising insurance and HOA costs driven by frequent climate disasters. Hurricanes Helene and Milton may have long-term impacts, with many young adults reconsidering their relocation plans.
Source : https://bit.ly/3U7Jpw5
By: Jon Iacono