03:57 PM EST, 11/21/2024 (MT Newswires) -- Early indicators of homebuying demand have surged following the US presidential election and the Federal Reserve's second consecutive interest rate cut, according to a Redfin (RDFN) report published Thursday.

Redfin's homebuyer demand index rose 17% year over year through the week ended Nov. 17 to its highest level since August 2023.

"The burst of buyers and sellers jumping into the market is the result of pent-up demand from people who were waiting for the election to pass, and for the Fed to cut interest rates a second time," said Redfin Economic Research Lead Chen Zhao.

The Federal Reserve cut interest rates by 25 basis points earlier this month following a 50-basis point cut in September.

"Even though mortgage rates have been rising since both of those things happened, house hunters who had pressed pause are jumping back in," Zhao said. "Now we're keeping a close eye on whether this is a short post-election boom, or if it translates into a steady improvement in pending sales."

While mortgage rates have moved higher in recent weeks, the average 30-year fixed mortgage rate for the week ended Nov. 14 was lower than it was in the same point of 2023, the real estate brokerage's report showed. Data from Freddie Mac showed the 30-year rate reached 6.84% for the week ended Thursday.

Pending sales rose 4.5% annually during the four-week period ended Nov. 17. New listings edged up 0.4% year over year, while active listings climbed nearly 12%, the smallest increase since March, according to Redfin.

Mortgage-purchase applications rose 1.7% for the week ended Nov. 15, the Mortgage Bankers Association reported on Wednesday. Applications for Federal Housing Administration loans, which are often used by first-time home buyers and can involve smaller down payments, increased 7% over the week, the MBA reported.

Price: 8.19, Change: +0.22, Percent Change: +2.76