Mortgage purchase applications increased 17% month over month in November to their highest level since late January, according to Redfin.
In addition, U.S. home listings were up 3% year over year as of December 1, according to the technology-powered real estate brokerage.
What’s more, pending home sales increased 6.5% year over year in November.
Redfin attributes the surge in activity to two main factors: Many people were waiting for the election to pass before getting serious about buying a home, and buyers are growing accustomed to elevated mortgage rates.
“The market is strong, with a lot of pent-up demand after a slow summer and early fall,” says Mimi Trieu, a Redfin Premier agent in the Bay Area, in a release. “Buyers realized mortgage rates may not drop below 5 percent, and probably not below 6 percent, in the near future. They are also noticing there are not many desirable, move-in ready homes for sale that are priced reasonably, so they’re pushing forward and negotiating for good deals. Homes that have been sitting on the market since the summer or early fall are finally selling.”
Photo: Irene Rego
