Redfin reports that U.S. pending home sales rose 2.5% in September, the largest monthly increase in more than a year and a half. Redfin (RDFN) CEO Glenn Kelman joins Wealth! To share his insights on the current housing market dynamics.
The 30-year fixed mortgage interest rate jumped to 6.44%, rising for the third consecutive week.
Mr. Kelman emphasizes the resilience of homebuyers in today’s market, particularly their responsiveness to interest rate fluctuations. “Some people try to lock in interest rates on Friday before they go up on Monday,” he explains.
The Fed’s September interest rate decisions had a psychological impact, setting off what Kellman calls a “change in the real estate industry.”
While Kellman acknowledges the impact of interest rates on housing affordability, he points to some positive developments. Despite rising median mortgage rates, monthly payments have fallen by an average of $300 since April, which has helped keep potential buyers interested, Kelman said. he says. “That’s why people are still staying in the game.”
Looking ahead to the presidential election, Kellman doesn’t expect any immediate changes to the housing sector under either the Trump or Harris administrations.
Instead, he drew parallels with the Fed’s influence, saying, “I think a lot of people are waiting the same way they were waiting for the Fed. When the Fed cuts rates, it actually “It didn’t affect mortgage rates, but it did affect consumers.” Even after the election, I don’t think it will actually have an immediate effect on things like inventory housing prices, but it will affect home buyers and housing. It may affect the psychology of the seller. ”
Kellman appeared on Yahoo Finance in September to comment on the U.S. housing market and policy expectations from Vice President Kamala Harris and former President Donald Trump. Here’s what he had to say:
One thing Redfin CEO wants to hear from Harris, Trump speech
America forgot how to build a house: Redfin CEO
For more expert insights and analysis on the latest market trends, check out Wealth here.
This post was written by Angel Smith
