Homebuyers Increase Inquiries But Find Less Inventory

May 30, 2017

For the first time in seven weeks, Freddie Mac is reporting an increase in the average 30-year fixed mortgage rate

More customers were seeking home tours and writing offers for home purchases last month, according to the latest Redfin Housing Demand Index, which reported a 9.2 percent jump from March to April for a seasonally adjusted level of 121.

According to Redfin, the seasonally adjusted number of buyers requesting tours was up 12.1 percent from March to April and the seasonally adjusted number of buyers writing offers was up 6.9 percent. However, inventory shortages continued to complicate the homebuying process: There were 13.1 percent fewer homes for sale than the previous March across the 15 metro areas tracked by Redfin, marking the 23rd consecutive month of year-over-year inventory declines.

“We know two things heading into the summer selling season,” said Redfin chief economist Nela Richardson. “One, home prices continue to leap forward. Two, homebuyers continue to jump into the market. A pop of new listings only encourages more homebuyers to barge their way into this crowded and competitive, low-inventory market in order to take advantage of still-low mortgage rates. For these reasons, we expect prices to continue to grow above their three-year average for the remainder of the year.”

About the author

Phil Hall

Link copied

Published

May 30, 2017

People On The Move

Ginnie Mae President Alanna McCargo Announces Resignation

McCargo was first woman and first woman of color at the helm of Ginnie Mae.

The U.S. Department of Housing and Urban Development (HUD) today announced that Alanna McCargo, president of the Government National Mortgage Association (Ginnie Mae), will resign, effective May 3, 2024. McCargo has served in the Biden-Harris Administration since January ...

People On The Move

Christensen, Andrus Added At CE Class Leader

Maximum Acceleration hires mortgage exec. as education director, adds banking manager

Brandon Christensen, a longtime mortgage broker and trainer, has been named Director of Education and National Instructor for Maximum Acceleration LLC, a leading NMLS-approved course provider for mortgage pre-license and continuing education. "Having Brandon join our amaz...