Lower borrowing costs lure more house hunters, but inventory and pricing tensions persist
Homebuying demand in the United States ticked higher in late April as mortgage rates eased from recent peaks and more owners put properties up for sale.
Data from real estate giant Redfin for the four weeks ending April 26 showed pending home sales up 2.7% year over year. That's the biggest gain in six weeks, while mortgage purchase applications climbed to a three‑month high.
New listings rose 2.2% from a year earlier after five straight months of decline, and the median sale price increased 2.4% to $396,000.
“Even though more buyers are coming off the sidelines, some are still wondering if they should wait for mortgage rates to fall more before making a move. I tell them no – if you love a home and you can afford it, make an offer,” said Sue Dhillon, a Redfin Premier agent in Seattle.
“It is a buyer’s market, but there is competition for desirable homes in popular neighborhoods. And while prices are lower than they have been over the past few years, they will rise quickly if bidding wars do pick up.”
Affordability improved slightly as the weekly average 30‑year fixed rate slipped to 6.23% in the week ending April 23, down from a seven‑month high earlier in April and below 6.81% a year earlier, according to Freddie Mac.
The typical monthly housing payment fell 2.2% year over year, Redfin estimated, even as the median asking price climbed 2%.
Small rate moves quickly reshape demand. A 20‑basis‑point decline in mortgage rates could flip the direction of home sales within a month, National Association of Realtors chief economist Lawrence Yun previously told Mortgage Professional America.
At the same time, inventory remained elevated by historical standards. Redfin’s latest figures showed active listings down 2.7% year over year, the biggest decline since 2023. However, it still covered 4.2 months of supply nationally – near what many economists considere a balanced range.
The regional picture stayed uneven. Late‑April Redfin data showed double‑digit annual price gains in markets such as Cleveland and Detroit, while prices in Seattle and Dallas slipped modestly.
Pending sales surged more than 25% in West Palm Beach and rose strongly in Chicago and Miami, even as they fell sharply in Detroit and Seattle.
Meanwhile, average US mortgage rates moved higher again this week, nudging borrowing costs back toward the mid‑6% range.
Freddie Mac’s latest Primary Mortgage Market Survey showed the 30‑year fixed‑rate mortgage averaged 6.30% as of April 30, up from 6.23% a week earlier and down from 6.76% a year ago.
Behind the headline move, the shift ended a three‑week slide that has briefly taken rates to their lowest levels of the season.
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