Redfin Corp - RDFN STOCK NEWS

Redfin (RDFN) reports a 4.1% month-over-month increase in pending home sales in December, the biggest jump since September 2021, driven by a significant decline in mortgage rates. The average 30-year-fixed mortgage rate fell to 6.82% in December from 7.44% in November, the largest monthly decrease since 2008. New listings also rose by 0.1% month over month, with active listings up by 3.1% month over month but down 5.1% from a year earlier. While housing supply is increasing, it remains below pre-pandemic levels.

The housing market is showing increased activity in 2024, with mortgage applications and new listings on the rise. Redfin economists attribute the slower growth to harsh winter weather. Mortgage-purchase applications are up 8% from a month ago, and new listings have increased 8% year over year. Buyers and sellers are motivated by steady mid-6% mortgage rates, resulting in a rise in homebuyer demand and listings. The typical U.S. homebuyer's monthly housing payment is $2,456 with this week's average rate, down from the record high of over $2,700 in October. The market is expected to pick up as the spring season approaches, provided that mortgage rates remain stable.

A new report from Redfin reveals that 26.3% of adult Gen Zers owned a home in 2023, with millennials at 54.8% and Gen X at 72%. The homeownership rate for adult Gen Zers remained unchanged due to high mortgage rates and housing prices but is expected to improve in 2024 as mortgage rates have dropped. Despite the stagnant rate, Gen Zers are outpacing previous generations in homeownership. Financial savvy and family support are contributing to their success in the housing market.

Empty-nest baby boomers own 28% of the nation’s large homes, while millennials with kids own just 14%. The landscape has transformed over the last decade: 10 years ago, young families were just as likely as empty nesters to own large homes. Baby boomers own an outsized share of large homes for several reasons, current and historical. Boomers built wealth through favorable economic conditions and investments in real estate. There is not much financial incentive for boomers to let go of large homes, as most own homes with no mortgage. Millennials and Gen Zers face challenges in finding and affording large homes due to the mortgage-rate lock-in effect and a lack of homebuilding. Additionally, some young Americans are not interested in homeownership, and others are renting large homes in the meantime. The share of large homes owned by each generation and household type has changed over the last decade, with baby boomers owning a much bigger share of large homes than they did 10 years ago, and young families owning a smaller share.

Redfin (RDFN) reports that the share of U.S. homeowners with mortgages below 6% interest rates has fallen from a record high of 92.8% in mid-2022 to 88.5%. This is attributed to the 'lock-in effect,' prompting many to stay put instead of selling and buying another home at a higher rate. The lock-in effect continues to fuel America’s housing shortage, but listings have started to tick up due to various factors such as homeowners needing to move, rising mortgage rates, and the fact that home prices soared during the pandemic.

Redfin (RDFN) reports a 3% year-over-year decline in pending U.S. home sales, with mortgage-purchase applications up 3% and Redfin's Homebuyer Demand Index up 5%. The median U.S. housing payment is down $327 (-12%) from the all-time high in October. There are 9% more new listings than a year ago, and Google searches for 'home for sale' are up 10% from a month earlier.

Redfin (NASDAQ: RDFN) reports a 0.8% year-over-year decrease in median U.S. asking rent in December to $1,964, marking the third consecutive decline. The rental market is affected by rising supply, leading to a 6.6% rental vacancy rate, the highest in nearly two years. Rents have fallen in the West and South but risen in the Midwest and Northeast, indicating regional disparities in the rental market.

Redfin (RDFN) reports a significant decrease in the median U.S. mortgage payment, down $372 (-14%) from its October peak to its lowest level in nearly a year. Early-stage homebuying demand is on the rise, with a 10% increase in new listings year over year and a 10% increase in Redfin's Homebuyer Demand Index from a month ago to its highest level since August.

Redfin (NASDAQ: RDFN) reports a decline in the share of U.S. homebuyers looking to move to a different metro area for the third straight month in November, dropping to 23.9%, the lowest share in a year and a half. The decline is attributed to the decreased feasibility of remote work and the overall slowdown in homebuying due to record-high unaffordability and severe supply shortage.