More Americans are stepping out for the early stages of home shopping as rates have cooled, but few are actually pulling the trigger.
That’s according to a new analysis by Redfin, which found that while purchase applications and Google searches of “homes for sale” are up 10% on the month, home sales haven’t increased at the same rate.
Redfin’s Homebuyer Demand Index hit its highest level since the beginning of 2025. But pending home sales are down more than 6% YOY as of March 9, following a trend of declines.
“Lower mortgage rates have brought some house hunters who were waiting for costs to come down off the sidelines. But they haven’t yet led to more sales because prospective buyers are still figuring out whether lower payments are enough to justify a home purchase in today’s uncertain economy. Many Americans are concerned about things like job security and a potential recession,” Redfin Economic Research Lead Chen Zhao said.
This has led to a stalled market despite new listings increasing, both monthly and annually.
Part of the problem is that declining rates are tied to economic uncertainty. Investors have moved toward safe-haven assets like bonds as the Trump administration’s trade wars and federal funding cuts sow confusion on Wall Street.
“Mortgage rates are coming down because the country’s economic outlook is getting stormier as investors worry about things like tariffs and a slightly weaker-than-expected job market,” Zhao noted.
The spring buying season is just kicking off, however, and buyers who are set on moving will benefit from lower borrowing costs.
One possibility is that the early part of spring will bring the most dedicated buyers, who will quickly scoop up homes, leading to demand flattening as summer closes in.
