Pending home sales in the United States remained stable ahead of Tuesday's presidential election, even as mortgage rates continue to rise — a trend that is expected to persist for the foreseeable future, according to Redfin. During the four-week period ending Sunday, pending home sales saw a year-over-year increase of 4.3%, totaling 72,885 units, which aligns with the upward trend observed over the previous six weeks.
The average daily fixed mortgage rate for 30-year loans peaked at 7.13% on Wednesday, marking the highest level since July, as reported by the real estate brokerage, citing Mortgage News Daily. "Buyers have been jittery the last few weeks because of the election," remarked Corey Stambaugh, a premier agent at Redfin.
"Most of the buyers I'm meeting are looking at a house or two, then telling me they'll be back in the new year." The 2024 U.S. presidential election has taken a significant turn, with Donald Trump emerging victorious over Kamala Harris, which could further influence the housing market. Redfin indicated that the election results are likely to contribute to higher mortgage rates in the near term.
The heightened rates may dissuade buyers more than previously anticipated. As the campaigns drew to a close and mortgage rates climbed, potential homebuyers chose to adopt a wait-and-see approach, leading to a dip in homebuyer demand, which is now at its lowest point since mid-September, as indicated by Redfin's homebuyer demand index.
Additionally, new home listings rose by a mere 0.3% compared to last year, reaching 79,452 units during the same four-week timeframe, reflecting the smallest increase in a year. Many sellers seem to be postponing their decisions to list their homes until after the presidential election. A survey conducted by Redfin and published on Monday revealed that U.S.
voters who cast their ballots by November 1 were more inclined to prioritize economic issues and inflation over housing affordability in their presidential choices for the 2024 race..