Pending Home Sales Drop Amid Rising Mortgage Rates

The housing market is experiencing a bumpy start to 2024, with pending sales dropping 8% due to rising mortgage rates and harsh winter weather. High housing costs are also pricing out potential homebuyers, but some house hunters are still touring properties. Redfin's Homebuyer Demand Index has shown a slight increase, and new listings are up 7% year over year. However, mortgage rates are climbing again, impacting demand, while some local lenders are offering rates in the 5% range for new construction projects.