Pending home sales in the United States fell by 2.9% year over year as of January 18, marking the smallest decline in more than a month, supported by lower mortgage interest rates. Meanwhile, purchase applications rose by 5% week over week, reaching their highest level in three years.
New property listings declined by 1.6% year over year, reflecting a slight improvement linked to falling interest rates. The average weekly mortgage rate dropped to 6.06%, its lowest level in three years. This decline reduced the average monthly housing payment by 6.3% compared with last year.
Despite the increase in buying and selling activity, homes are staying on the market longer, averaging 61 days—one week longer than a year ago—due to buyers dominating the market, carefully comparing offers and preferring to negotiate. The market is showing a buyer-friendly trend as the number of sellers outweighs that of buyers.
According to real estate agent Ben Ambrosh of Redfin Premier, buyers currently have greater leverage as they seek favorable terms amid higher interest rates. Sellers are more willing to make concessions to speed up the sales process, especially with properties remaining on the market for longer periods.
