Buyers are waiting to see how new rules on agent fees play out, and if mortgage rates and home prices drop further, according to Redfin.
Mortgage rates are falling, but buyers aren’t jumping back into the market yet as they wait to see how new rules on agent fees will play out, and if rates and prices drop further, Redfin says.
Last week’s 30-year fixed rate fell to just under 6.5 percent, its lowest since April 2023 according to data from Freddie Mac.
But pending sales remain low, falling 6.9% in the last four weeks in their biggest annual decline in almost a year, according to Redfin.
Redfin says there’s a combination of factors limiting homebuyers from acting on the low rates.
First, buyers are waiting to see how a new National Association of Realtors settlement will affect the buying process. The NAR settlement introduced a new set of rules this month that’s changed the way real estate agents are paid.
The rules are meant to stop buyers and sellers from having to pay steep commissions to their agents, but buyers will now be frequently asked to sign a buyer-representation agreement before seeing any homes with an agent.
