Core Insights - Mortgage rates have decreased, yet homebuying activity remains stagnant, with pending home sales declining for the first time in nearly three months, down about 1% year-over-year as of September 21 [1] - The average mortgage rate has fallen for nine consecutive weeks, reaching an 11-month low of 6.26%, but existing home sales dipped 0.2% in August from the previous month, indicating a stagnant housing market despite a 1.8% increase from a year ago [2] - Lower mortgage rates have led to a significant increase in refinancing applications, which surged 58% in the second week of September, while mortgage-purchase applications only rose by 3%, suggesting that lower borrowing costs are not effectively stimulating home purchases [3] Factors Affecting Housing Demand - Four main factors are impacting housing demand: elevated home prices, potential buyers waiting for mortgage rates to drop below 6%, limited new listings, and economic uncertainty [4] - Recent data indicates that top-tier 30-year fixed mortgage rates have increased slightly, reflecting rising Treasury yields and diminishing expectations for aggressive rate cuts from the Federal Reserve [5] - Job growth has not been robust, contributing to a negative outlook for the housing market, alongside lingering concerns about tariffs and recession fears [6] Buyer Sentiment - Buyer hesitation is prevalent due to concerns over job security, stock market performance, and overall economic conditions, leading many buyers to make offers with contingencies and a willingness to withdraw if their demands are not met [7]