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The average 30-year fixed mortgage interest rate is 7.13% today, down -0.05% over the last week. The average rate for a 15-year fixed mortgage is 6.57%, which is an increase of 0.03% compared to a week ago. For a look at mortgage rate movement, see the chart below.

Because inflation data hasn’t been improving, the Federal Reserve has been postponing rate cuts. Though mortgage rates could still go down later in the year, housing market predictions change regularly in response to economic data, geopolitical events and more.

Today’s average mortgage rates


Today’s average mortgage rates on May. 17, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US.

Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

Which mortgage term and type should I pick?

Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 7.13% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.

15-year fixed-rate mortgages

Today, the average rate for a 15-year, fixed mortgage is 6.57%. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 6.58% today. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.

What’s behind today’s high mortgage rates?

Over the last few years, high inflation and the Federal Reserve’s aggressive interest rate hikes pushed up mortgage rates from their record lows around the pandemic. Since last summer, the Fed has consistently kept the federal funds rate at 5.25% to 5.5%. Though the central bank doesn’t directly set the rates for mortgages, a high federal funds rate makes borrowing more expensive, including for home loans.

Mortgage rates change daily, but average rates have been moving between 6.5% and 7.5% since late last fall. Today’s homebuyers have less room in their budget to afford the cost of a home due to elevated mortgage rates and steep home prices. Limited housing inventory and low wage growth are also contributing to the affordability crisis and keeping mortgage demand down.

Will mortgage rates drop this year?

Most housing market experts predict rates will end the year between 6% and 6.5%. Ultimately, a more affordable mortgage market will depend on how quickly the Fed begins cutting interest rates. The central bank could start lowering interest rates in the fall, but it will depend on how the economy fares in the coming months.

Mortgage rates fluctuate for many reasons: supply, demand, inflation, monetary policy, jobs data and market expectations. Homebuyers won’t see lower rates overnight, and it’s unlikely there will ever be a return to the 2-3% mortgage rates we saw between 2000 and early 2022.

“We are expecting mortgage rates to fall to around 6.5% by the end of this year, but there’s still a lot of volatility I think we might see,” said Daryl Fairweather, chief economist at Redfin.

Every month brings a new set of inflation and labor data that can influence the direction of mortgage rates, said Odeta Kushi, deputy chief economist at First American Financial Corporation. “Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates,” Kushi said.

Here’s a look at where some major housing authorities expect average mortgage rates to land.

Calculate your monthly mortgage payment

Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.

How can I find the best mortgage rates?

Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.

  1. Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
  2. Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
  3. Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
  4. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
  5. Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.

Source: cnet.com

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Donald R. Horton, chairman of the eponymous homebuilder that shared his name, died suddenly at age 74; no further details were disclosed. According to a LinkedIn post, D.R. Horton employees were notified on Thursday afternoon, with the company putting out a press release on Friday morning.

Horton was the founder of the company in 1991 and occupied the chairman’s role since then, as well as acting as president and CEO from July 1991 until November 1998.

Horton, who stepped back from an executive role at his company D.R. Horton in October, died suddenly on Thursday.

He was involved in real estate and homebuilding since 1972, and was the founder, sole or principal stockholder, director and president of each of D.R. Horton’s predecessor companies, which date from 1978 to 1990.

D.R. Horton was the largest homebuilder in the nation in 2022 based on gross revenue, at $32.67 billion, edging out Lennar at $31.78 billion, according to Statista.

David Auld, executive vice chairman, has been elevated to executive chairman after Horton’s death.

“It is with great sadness that I announce the passing of my friend and our company’s iconic founder and chairman, Don (“DR”) Horton,” Auld said in the announcement. “Throughout the company’s 46-year existence, he worked tirelessly to build a national homebuilding operation with a strong company culture, and the impact of his personal involvement with our team of operators across the United States has contributed immeasurable value to our company and people.”

On Oct. 1, 2023, Horton stepped aside from an executive role at the homebuilder but remained as chairman. Auld moved to executive vice chairman from president and CEO, while Paul Romanowski, the then-executive vice president and co-chief operating officer moved into the jobs Auld previously occupied; no reason was provided for the changes at the time.

“We are all indebted to DR for his vision, tenacity and never-ending drive to continue to grow and improve our company,” Auld said. “While he is impossible to replace, we will strive to carry on his legacy of enabling the dream of homeownership for individuals and families across the United States in every stage of their lives.”

D.R. Horton owns an in-house lender, DHI Mortgage. In the first quarter, the company said this business provided financing for 80% of homes it sold, according to the 10-Q filing.

The homebuilder closed on the sale of 22,548 homes, with DHI originating the mortgage on 18,066. That compared with 19,664 and 14,865 for the first quarter of 2023.

The financial services segment, which includes a title company, had pretax income of $78 million for the first quarter, down from $85.6 million one year prior.

In its fourth quarter results, D.R. Horton noted its home sales business was being boosted through the use of temporary mortgage rate buydowns.

A public memorial for Horton will be held at a later date. He is survived by his wife Marty, their sons Ryan (and his wife Stacy) and Reagan (and his wife Michelle) and four grandchildren: Douglas, Madeline, Derek and Shelby.

Source: nationalmortgagenews.com

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Moderate, Inconsequential Weakness

By:
Matthew Graham

Fri, May 17 2024, 3:31 PM

Moderate, Inconsequential Weakness

Bonds lost ground at a modest to moderate clip on Friday, but not for any interesting or obvious reasons.  The selling has been very linear over the past 2 trading days with Treasury yields fitting neatly inside a simple trend channel.  There is perhaps some small case to be made for excess weakness in European bonds spilling over the a US bond market that has nothing better to do and no compelling motivations of its own.  In the bigger picture, anything that takes place between 10yr yields of 4.34 and 4.50 would be considered very range-bound and that range might not be meaningfully challenged until the first week or two of June.

09:15 AM

Modestly weaker overnight with 10yr up 2.3bps at 4.40 and MBS down 2 ticks in 6.0 coupons

12:48 PM

weakest levels of the day with MBS down 6 ticks (.19) and 10yr yield up 3.6bps at 4.413.

03:09 PM

Just a bit more weakness, but flatting out now.  MBS down just under a quarter point and 10yr up 4.3bps at 4.42

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

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Mortgage rates retreated from 2024 highs for the third week in a row and were headed below 7 percent after Wednesday’s release of two reports showing the economy cooled in April, potentially giving Federal Reserve policymakers an incentive to cut rates sooner rather than later.

A key inflation gauge, the Consumer Price Index (CPI), showed prices for a broad range of goods were up 3.4 percent in April from a year ago, down from 3.5 percent in March. It was the first downward move in annual price growth since January.

Core CPI, which excludes volatile food and energy prices and can be a better predictor of inflation trends, was up 3.6 percent in April from a year ago, an improvement from 3.8 percent annual growth in March.

A separate Census Bureau report released Wednesday showed retail and food services sales were slower than expected in April.

“The smallest increase in the core CPI since December will reassure the Fed that monetary policy is tight enough to bring inflation eventually back to the 2 percent target, though the run rate still needs to slow further to trigger rate cuts, unless payrolls tank first,” Pantheon Macroeconomics Chief Economist Ian Shepherdson said in a note to clients.

Futures markets tracked by the CME FedWatch tool on Wednesday put the odds of one or more Fed rate cuts by Sep. 18 at 73 percent, up from 65 percent on Tuesday.

Yields on 10-year Treasurys, a barometer for mortgage rates, dropped 10 basis points after the data releases and are now down nearly 40 basis points from a 2024 high of 4.74 percent registered April 25.

Mortgage rates retreat from 2024 highs

Data tracked by Optimal Blue lags by a day but shows that even before Wednesday’s news rates on 30-year fixed-rate mortgages had dropped to an average rate of 7.00 percent Tuesday — down 27 basis points from the 2024 high of 7.27 percent recorded on April 25.

A same-day index compiled by Mortgage News Daily (MND) showed rates on 30-year fixed-rate mortgages dropping 12 basis points Wednesday, to 6.99 percent.

If Optimal Blue’s survey shows a similar drop when data is released Thursday, that would mean homebuyers were able to lock contracted rates on 30-year fixed-rate loans at below 6.9 percent on Wednesday.

The rates reported by MND are higher than Optimal Blue’s because the MND index is adjusted to estimate the effective rate borrowers are offered, regardless of what points they’re willing to pay. Optimal Blue uses contracted rates provided for rate locks, even if borrowers have paid points to get a lower rate.

With inventories in many markets still scarce, homebuyers have yet to come out in force in response to lower rates.

After picking up by 2 percent during the week ending May 3, applications for purchase loans fell by a seasonally adjusted 2 percent last week compared to the week before, according to a weekly survey by the Mortgage Bankers Association.

Last week’s decline in rates “led to a small boost to refinance applications, including another strong week for VA refinances,” MBA Deputy Chief Economist Joel Kan said, in a statement.

The drop in purchase loan applications was driven largely by a 9 percent drop in FHA purchase applications, Kan said, compared to a 1 percent drop in applications for conventional loans eligible for purchase by Fannie Mae and Freddie Mac.

Joel Kan

“While the downward move in rates benefits prospective homebuyers, mortgage rates are still much higher than they were a year ago, while for-sale inventory remains tight,” Kan said.

Compared to a year ago, purchase loan applications were down 14 percent, while requests to refinance were up 7 percent.

Inventories are less of an issue for new-home buyers, and even as rates climbed in April, mortgage applications for new home purchases were up 22.1 percent from a year ago, a separate MBA survey showed.

Based on loan applications submitted to homebuilders’ mortgage subsidiaries, the MBA estimates that new homes were selling at a seasonally adjusted annual rate of 699,000 units in April, up nearly 14 percent from March.

“There continues to be healthy demand for new homes, given greater availability and other benefits over existing home purchases such as builder concessions and customization options,” Kan said. “First-time homebuyers account for a growing share of purchase applications with the FHA share of applications at 26.3 percent in April.”

Inflation moderated in April

Last year inflation, particularly core CPI, was consistently trending down, raising hopes that the Fed might cut interest rates in time for the spring homebuying season.

But a string of hot inflation reports in March and April sent mortgage rates rebounding to new 2024 highs — sparking speculation that the Fed might not only keep rates higher for longer but, eventually, be forced to raise rates to bring inflation under control.

However, Fed policymakers have always said that it would take time for the 11 rate increases implemented from March 2022 through July 2023 to have an effect on the economy. Those rate hikes brought the short-term federal funds rate to a target of between 5.25 percent and 5.5 percent — the highest level since 2001.

At their May 1 meeting, Fed officials took a subtle step toward easing by dialing back the pace of “quantitative tightening” — an unwinding of the central bank’s $7 trillion balance sheet — to $40 billion a month, less than half the pace envisioned two years ago.

Two days later, with mortgage rates already retreating from 2024 highs, a surprisingly soft April jobs report from the Labor Department accelerated the pullback in rates, as bond market investors who fund most mortgages reassessed the likelihood of Fed rate cuts.

The latest CPI report is additional evidence that the economy is cooling, and inflation is trending down.

Ian Shepherdson

“Looking ahead, the case for expecting a further slowdown in core CPI inflation remains compelling,” Shepherdson said. “Supply chains have normalized, wage growth is weakening, and corporate margins are flat but still hugely elevated, indicating clear scope to fall ahead. At the same time, global food and energy prices remain unthreatening, and rent inflation for new tenants remains subdued.”

Shepherdson thinks the foundations are in place for further deceleration in core CPI this summer, allowing the Fed to start easing in September — or as early as July, if job growth continues to decelerate as quickly as implied by National Federation of Independent Business (NFIB) surveys.

But Nigel Green, CEO of Dubai-based deVere Group, issued a more hawkish view, warning that investors are “indulging in wishful thinking on Fed rate cuts” this year.

Nigel Green

“Super cautious Fed officials will need to see several consecutive months of evidence showing inflation — which is proving far stickier than had been hoped — is really heading back to the 2 percent target before they consider a pivot on monetary policy,” Green said in a statement. “As such, we still expect there’s a considerable risk that they will not feel comfortable about cutting rates before 2025.”

The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, is closer to reaching the Fed’s 2 percent inflation target than CPI, registering 2.7 percent in March.

While the March PCE print was up from 2.5 percent in February, the next PCE data release on May 31 could provide more downward momentum for mortgage rates — or send them rebounding again.

Get Inman’s Mortgage Brief Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.

Email Matt Carter

Source: inman.com

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Builders’ confidence in the new home market retreated this month, the first decline since last November. The National Association of Home Builders (NAHB) reports that the NAHB/Wells Fargo Housing Market Index (HMI) lost 6 points from its April level, falling to 45.

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor” and asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” A score above 50 for the HMI or any of its components indicates that more builders view sales conditions as good than poor.

All three HMI component indices declined decisively in May. The HMI index charting current sales conditions in May fell 6 points to 51, the component measuring sales expectations in the next six months fell 9 points to 51 and the gauge charting traffic of prospective buyers declined 4 points to 30.

NAHB economist Robert Dietz stated that the reason for the decline is the persistently high mortgage interest rates which have remained above 7 percent for the last four weeks. Dietz said, “The market has slowed since mortgage rates increased and this has pushed many potential buyers back to the sidelines. A lack of progress on reducing inflation pushed long-term interest rates higher in the first quarter and this is acting as a drag on builder sentiment. The last leg in the inflation fight is to reduce shelter inflation, and this can only occur if builders are able to construct more attainable, affordable housing.”

Dietz said that adding to builder concerns is the expanding scope of various regulatory burdens. For example, rules becoming effective later this year will allow HUD and USDA to insure new single-family mortgages only if the homes are built in conformance with the 2021 International Energy Conservation Code. “This will further increase the cost of construction in a market that sorely needs more inventory for first-time and first-generation buyers.”

The May builder survey also revealed that 25 percent of respondents cut home prices to bolster sales in May, ending four months of consecutive declines. However, the average price reduction in May held steady at 6 percent for the 11th straight month. Fifty-nine percent of builders reported use of some form of sales incentives compared to 57 percent in April.

The three-month moving averages for regional scores were mixed. The Midwest increased 3 points to 49; the Northeast and the South both fell 2 points, to 61, and 49, respectively. The West posted a 4-point decline to 43.

Source: mortgagenewsdaily.com

Apache is functioning normally

It’s the day after the CPI data and thus begins a concerted effort over the next few weeks to avoid compiling every piece of commentary as a simple countdown to the next CPI.  To be fair, we will avoid some of that temptation by counting down to the first week of June with its more robust economic calendar and by the time we get through the jobs report on June 7th, it will be perfectly logical to move on to CPI anticipation.  But for now, Memorial Day market closures may as well start early. 

Bonds are little-changed from yesterday with modest gains turning into modest losses after the 8:30am econ data.  No one should read anything into the level of weakness seen so far today as it leaves trading levels easily inside yesterday’s post-CPI range.  If there’s one report to blame for the push-back this morning, it would have to be Import Prices. That’s a break from the norm (it essentially never has an impact), but this one was exceptionally far from the forecast at 0.9 vs 0.3.

Source: mortgagenewsdaily.com

Apache is functioning normally

© David Gyung – iStock/Getty Images Plus

Mortgage rates dipped to a 7.02% average this week, the second consecutive week for declines, Freddie Mac reports.

“The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective home buyers,” says Sam Khater, Freddie Mac’s chief economist.

Rates above 7% have been blamed for slowing down the spring homebuying season. Homebuilders said this week that higher rates, which are pressing on home buyers’ budgets, are prompting them to build fewer homes.

“While the start of the year has seen an expansion for single-family home building because of a lack of existing inventory, homebuilding activity leveled off in April as higher interest rates, tighter lending conditions and lower sentiment acted as headwinds on new-home construction,” says Carl Harris, chairman of the National Association of Home Builders. “Lower interest rates, particularly for builder and developer loans, will help builders to increase the pace of home construction in the months ahead.”

Despite the latest ease in mortgage rates, home buyers haven’t been flooding back to the market. Mortgage applications for home purchases—viewed as a gauge of future homebuying activity—fell 2% in the latest week and are down 14% from a year ago, the Mortgage Bankers Association reports. The biggest pullback has been seen in Federal Housing Administration loan applications, which tend to be favored by first-time or low-income buyers.

“While the downward move in rates benefits prospective home buyers, mortgage rates are still much higher than they were a year ago while For Sale inventory remains tight,” says Joel Kan, deputy chief economist at the Mortgage Bankers Association.

At this week’s 7.02% average for the 30-year fixed-rate mortgage, the typical monthly mortgage payment on a $400,000 home, assuming a 10% down payment, would be about $2,400, says Jessica Lautz, deputy chief economist at the National Association of REALTORS®.

Mortgage rates have remained above 7% for five consecutive weeks. “Higher rates are hurting first-time homeowners and eroding affordability,” Lautz says. However, this week’s inflation data showed a slight decline, which could help lower mortgage rates for spring home buyers, Lautz adds.

Freddie Mac reports the following national averages with rates for the week ending May 16:

  • 30-year fixed-rate mortgages: averaged 7.02%, dropping from last week’s 7.09% average. A year ago, 30-year rates averaged 6.39%.
  • 15-year fixed-rate mortgages: averaged 6.28%, also falling from last week’s 6.38% average. A year ago, 15-year rates averaged 5.75%.

Source: nar.realtor

Apache is functioning normally

Lower interest rates gave a lift to refinancing activity for the second week but failed to do the same for those financing home purchases. The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, increased 0.5 percent on a seasonally adjusted basis during the week ended May 10. On an unadjusted basis, the Index increased 0.3 percent compared with the previous week.

The Refinance Index rose 5.0 percent week-over-week and was 7.0 percent higher than the same week one year ago. Refinancing accounted for 32.0 percent of total applications, up from 30.6 percent the prior week.

Applications for home purchase financing fell back 2.0 percent on both an adjusted and unadjusted basis. The unadjusted index was 14.0 percent lower than the same week in 2023.  

“Treasury yields continued to move lower last week and mortgage rates declined for the second week in a row, with the 30-year fixed rate down 10 basis points to 7.08 percent, the lowest level since early April,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The decline in rates led to a small boost to refinance applications, including another strong week for VA refinances. However, the overall level of refinance activity remains low. Purchase applications decreased, driven largely by a 9 percent drop in FHA purchase applications. Conventional home purchase applications were down around one percent. 

Added Kan, “While the downward move in rates benefits prospective homebuyers, mortgage rates are still much higher than they were a year ago, while for-sale inventory remains tight.”

Highlights from the MBA’s Weekly Mortgage Applications Survey

  • Loan sizes relinquished their gains from the previous week.  The average loan request declined to $379,400 from $385,600 while purchase loans dropped from $443,200 to $437,700.
  • The FHA share of applications decreased to 12.4 percent from 12.9 percent and VA applications accounted for 12.7 percent of the total, a 1 percentage point uptick from the prior week. USDA applications appear stuck at 0.4 percent.
  • The conforming 30-year fixed-rate mortgage (FRM) rate of 7.08 percent was accompanied by points that declined to 0.63 from 0.65.
  • Jumbo 30-year FRM rates decreased to 7.22 percent from 7.31 percent. Points increased to 0.58 from 0.46.  
  • The average contract interest rate for a 30-year FRM backed by the FHA was 6.86 percent, down from 6.92 percent, with points increasing to 0.94 from 0.91.
  • Fifteen-year FRM rates moved 1 basis point higher to 6.61 percent.  Points grew to 0.65 from 0.59.
  • The average contract interest rate for 5/1 adjustable-rate mortgages (ARMs) decreased to 6.56 percent from 6.60 percent, with points increasing to 0.66 from 0.65.
  • The ARM share of activity decreased to 7.0 percent of total applications from 7.7 percent.

Source: mortgagenewsdaily.com

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Pending home sales are down and new listings are flat during a time of year when they typically rise. But this week’s softer-than-expected inflation report sent mortgage rates down, which could bring back some homebuyers and sellers. 

Pending home sales fell 4.3% from a year earlier during the four weeks ending May 12, the biggest decline in roughly three months. They also posted a week-over-week decline, unusual for early May. Inventory is losing momentum, too, as would-be sellers stay put to hang onto their low mortgage rate. New listings rose 10% year over year, but they were essentially flat from a week earlier, which is significant because listings typically increase this time of year. 

The housing market slumped because of sky-high housing costs. The median U.S. home-sale price is up 4.7% year over year to a record $386,951, and the median monthly mortgage payment is sitting at $2,858, just $26 shy of the all-time high set in April. But affordability is starting to improve a bit: Daily average mortgage rates have steadily declined since the start of May, and this week’s slightly softer-than-expected inflation report sent rates below 7% for the first time in over five weeks. And 6.3% of home sellers are dropping their price, on average, the highest share in a year and a half, which may mean price growth loses momentum soon. 

“High prices and rates are challenging, but there are ways for buyers to take advantage of the somewhat slow market,” said Marsha McMahon-Jones, a Redfin Premier agent in Palm Springs, CA. “Sellers know that high mortgage rates mean they should expect negotiations, expect offers to come in under list price, and be ready for some back and forth on things like repairs and closing costs. Buyers may not be able to get a lower mortgage rate, but they’re often getting homes for slightly less than the asking price. It’s also a good time to buy a fixer-upper at a lower price point because those aren’t selling as quickly.” 

For Redfin economists’ takes on the housing market, including how current financial events like the latest CPI report are impacting mortgage rates, please visit Redfin’s “From Our Economists” page. 

Leading indicators

Indicators of homebuying demand and activity
Value (if applicable) Recent change Year-over-year change Source
Daily average 30-year fixed mortgage rate 6.99% (May 15) Down from a 5-month high of 7.52% three weeks earlier  Up from 6.55% Mortgage News Daily 
Weekly average 30-year fixed mortgage rate 7.09% (week ending May 9) Down from 5-month high of 7.22% a week earlier Up from 6.35% Freddie Mac
Mortgage-purchase applications (seasonally adjusted) Declined 2% from a week earlier (as of week ending May 10) Down 14% Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted) Lowest level in 2 months (as of week ending May 12) Down 13% Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Touring activity Up 5% from the start of the year (as of May 13) At this time last year, it was up 21% from the start of 2023 ShowingTime, a home touring technology company 
Google searches for “home for sale” Down 8% from a month earlier (as of May 13) Down 15% Google Trends 

Key housing-market data

U.S. highlights: Four weeks ending May 12, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. 
Four weeks ending May 12, 2024 Year-over-year change Notes
Median sale price $386,951 4.7% All-time high
Median asking price $418,455 6.6% All-time high
Median monthly mortgage payment $2,858 at a 7.09% mortgage rate 12.7% Just $26 below all-time high set during the 4 weeks ending April 28
Pending sales 90,457 -4.3% Biggest decline since 4 weeks ending Feb. 25
New listings 102,269 10%
Active listings 890,224 14.2%
Months of supply  3.2 +0.5 pts.  4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions. 
Share of homes off market in two weeks  45.2% Down from 49%
Median days on market 33 +2 days
Share of homes sold above list price 30.8% Down from 33%
Share of homes with a price drop 6.3% +2 pts.  Highest level since Nov. 2022
Average sale-to-list price ratio  99.4% Unchanged

Metro-level highlights: Four weeks ending May 12, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. 
Metros with biggest year-over-year increases Metros with biggest year-over-year decreases

Notes
Median sale price Detroit (18.8%)

Anaheim, CA (18.6%)

West Palm Beach, FL (16.2%)

San Jose, CA (13.6%)

Newark, NJ (11.7%)

 San Antonio (-0.5%)

Decreased in just 1 metro
Pending sales San Jose, CA (16.6%)

Anaheim, CA (9.2%)

San Francisco (5.3%)

Newark, NJ (5.2%)

Sacramento, CA (3%)

 Phoenix (-14.9%)

Atlanta (-13.6%)

Houston (-13.2%)

West Palm Beach, FL (-11.8%)

Nashville, TN (-11.1%)

 Increased in 12 metros
New listings San Jose, CA (40.2%)

Seattle (26.4%)

Phoenix (24.7%)

Oakland, CA (24.6%)

Montgomery County, PA (21.9%)

 Chicago (-8.1%)

Atlanta (-3.4%)

Detroit (-3.1%)

Virginia Beach, VA (-1.9%)

Newark, NJ (-1.6%)

Warren, MI (-1.2%)

 Decreased in 6 metros

Refer to our metrics definition page for explanations of all the metrics used in this report.

Source: redfin.com