October 25, 2024
- The Realtor.com® economics team video update gives you the relevant economic and real estate information you need to know each week every Friday to navigate the housing market as a homebuyer, home seller, or industry professional.
- For the week ending Friday October 25, Realtor.com® Senior Economist Ralph McLaughlin recaps how markets showed signs that interest rate cuts may be slower than anticipated, with 10-year yields increased by a full 25 basis points this week to settle around 4.25%. This has helped push the 30-year fixed rate to 6.54%—its highest in roughly 2 months.
- Mortgage applications for home purchases continue to step back in the face of higher rates, but remained above year ago pace for a 5th straight week, indicating persistent improvement in homebuyer demand.
- Higher than expected rates also continue to suppress the resale market, with existing-home sales falling to a 14-year low. Inventory also continues to rise and hit a 4-year high in September. However, demand was still solid enough to support a home price gain of 3% over the past year.
- In the for-sale housing market, weekly data from Realtor.com continues to show that sellers are interested in doing business, with new listings up by 4.7% on a year-over-basis despite rising rates. Homebuyers should take note that homes are moving over a week slower than this time last year.
- Down payments reached an average of 14.5% in the third quarter of 2024—down slightly from the 2024 Q2 historical peak of 14.9%. The states where down payments have climbed the most over the past year include Maine, Rhode Island, Connecticut, Vermont, and New Jersey.
- The seasonal best time to buy has passed nationwide, but conditions are still relatively favorable for buyers. In places like Los Angeles, Houston, and Minneapolis, next week is the best week while in several major markets in warmer climes, including Phoenix, Tampa, and Raleigh, the data show that the first week of November offers peak buyer conditions.
- We also released our Fall Housing Market Rankings that highlight housing markets that offer home shoppers both a lower cost of living and have robust local economies. The top five markets this Fall are Canton and Akron, Ohio, Milwaukee, Wisconsin, Manchester, New Hampshire, and Kalamazoo, Michigan.
VIDEO TRANSCRIPT:
- I’m Ralph McLaughlin, Senior Economist at Realtor.com®. And here’s what you need to know about the economy and housing market this week!
- First up, the Realtor.com economics team released our downpayment report, showing that down payments reached an average of 14.5% in the third quarter of 2024. This is down slightly from the 2024 Q2 historical peak of 14.9%. The states where downpayments have climbed the most over the past year include Maine, Rhode Island, Connecticut, Vermont, and New Jersey.
- Next up, mortgage rates! With markets showing signs they expect the pace of interest rate cuts to be slower than anticipated, 10-year yields increased by a full 25 basis points this week to settle around 4.25%. This has helped push the 30-year fixed rate to 6.54%–its highest in roughly 2 months.
- Mortgage applications for home purchases continue to step back in the face of higher rates, but remained above year ago pace for a 5th straight week, indicating persistent improvement in homebuyer demand.
- Higher than expected rates also continue to suppress the resale market, with existing-home sales falling to a 14 year low. Inventory also continues to rise and hit a 4-year in September. However, demand was still solid enough to support a home price gain of 3% over the past year.
- We also released our Fall Housing Market Rankings that highlight housing markets that offer home shoppers both a lower cost of living and have robust local economies. The top five markets this Fall are Canton and Akron, Ohio, Milwaukee, Wis, Manchester, N.H, and Kalamazoo-Portage, Mich.
- In the for-sale housing market, weekly data from Realtor.com continues to show that sellers are interested in doing business, with new listings up by 4.7% on a year-over-basis despite rising rates. Homebuyers should take note that prices are flat and homes are moving over a week slower than this time last year.
- The seasonal best time to buy has passed nationwide, but conditions are still relatively favorable for buyers. In places like Los Angeles, Houston, and Minneapolis, next week is the best week while in several major markets in warmer climes, including Phoenix, Tampa, and Raleigh, the data show that the first week of November offers peak buyer conditions.
- You’ll find all the details, including full reports and our housing data for download, at realtor.com/research. You can also follow us on X (formerly twitter) for real time updates. And now instagram @realtordotcomecon for graphics.
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