RedFin, Opendoor Stocks Jump on Hopes for Lower Interest Rates

Rates dropped after the Fed indicated on Wednesday that they're on a path toward lowering interest rates more and sooner than expected. Redfin, and real estate firms like it predict that Fed movements are a reason mortgage rates are likely to drop into the mid-6% range in 2024.

Mortgage payments are at their lowest level in eight months, Redfin reported.

"Even before the Fed meeting, mortgage rates had declined substantially from their peak, bringing homebuyers some relief," the release read. "The median U.S. housing payment is $2,503 as of the four weeks ending December 10, down $233 from October's record high and its lowest level since April."

Mortgage-purchase applications are up 19% from the three-decade low they dropped to at the start of November. Redfin's Homebuyer Demand Index— that it describes as a measure of requests for tours and other homebuying services from Redfin agents—is up 3% from a month ago.

The median U.S. home sale price is up 4.5% year over year, the biggest increase since October 2022, according to the firm. Even though new listings are up 8% year over year—the biggest increase since July 2021—the total number of homes for sale is still down 5%.

🎙️Q: Are you more likely to buy a home, or a Home Selling Stock?