Blog posted January 6th 2025
By Don Almeida – Mortgage Expert and President of Happy Home Mortgage.
The housing market is seeing some intriguing shifts as new home listings climbed 8% year-over-year during the four weeks ending December 29, according to a recent Redfin report.
This uptick in listings might indicate a more diverse range of options for buyers entering the market, even as the pace of sales adjusts to higher inventory. While overall home sales are moderating, this provides an opportunity for buyers to explore properties with less competition.
In December, the total number of homes available for sale rose 10%, and as of January 2, the average daily 30-year fixed mortgage rate stood at 7.07%. While slightly lower than the 7.14% rate recorded two weeks prior, it’s worth noting the consistency compared to broader fluctuations, suggesting potential stability ahead. Freddie Mac reported the weekly average rate at 6.91%, giving prospective buyers more data points to make informed decisions.
Although the Mortgage Bankers Association noted a seasonal dip in mortgage applications, these shifts could reflect a strategic pause by buyers assessing market conditions. Redfin’s Homebuying Demand Index for the week ending December 29 remained steady from November, indicating sustained interest in home purchases.
Further, while home-touring activity decreased 52% year-over-year, searches for “home for sale” increased 30% in December compared to the prior month, demonstrating that curiosity and interest remain strong.
Meanwhile, median home prices reached $383,750 for the four weeks ending December 29, up 6.4% year-over-year—the largest increase since October 2022. With median monthly mortgage payments at $2,515 (up 8.1% annually), buyers may be navigating higher costs, but they’re also witnessing the market’s resilience and evolving opportunities as we enter a new year.
Sources:
– Data and insights referenced in this article are drawn from Redfin’s market report, Freddie Mac’s weekly mortgage updates, and the Mortgage Bankers Association’s December 27 report.
