Pending home sales in the United States have demonstrated stability ahead of Tuesday's presidential election, according to Redfin. This steadiness persists even as mortgage rates continue to rise, with predictions indicating that these rates may climb even higher in the foreseeable future. In the four weeks leading up to Sunday, pending home sales rose 4.3% year-over-year, reaching a total of 72,885 units, consistent with the growth observed over the previous six weeks, Redfin stated.
The daily average for 30-year fixed mortgage rates surged to 7.13% on Wednesday, marking the highest point since July, as reported by Mortgage News Daily. "Buyers have been jittery over the last few weeks due to the impending election," remarked Corey Stambaugh, a premier agent from Redfin. "Most of the buyers I'm encountering are looking at one or two properties, only to tell me they plan to return in the new year." Following the election results, it was announced that Donald Trump has defeated Kamala Harris, reclaiming the presidency in the 2024 US elections.
Redfin expressed that the outcome is likely to result in even higher mortgage rates in the near future. Economists at the brokerage predict that elevated rates could deter potential buyers more significantly than current trends suggest. Many prospective homebuyers seemed inclined to remain on the sidelines as election campaigns drew to a close and interest rates increased.
Redfin's Homebuyer Demand Index has decreased to its lowest level since mid-September, indicating dwindling buyer enthusiasm. Additionally, new home listings experienced a modest uptick of 0.3% compared to a year earlier, totaling 79,452 units in the four-week period ending Sunday. This increase marks the smallest gain reported in a year, with some sellers preferring to postpone their listings until after the presidential election. Furthermore, a recent survey by Redfin revealed that US voters who cast their ballots by November 1 were more likely to prioritize the economy and inflation over housing affordability when making their decision for the presidency in the upcoming 2024 election..