Mortgage Rate Decrease Spurs Home Listings, But Housing Supply Still Below Pre-Pandemic Levels

Despite a 4.9% increase in active listings in December, the housing market remains constrained with many homeowners reluctant to sell due to low mortgage rates.

• Recent decrease in mortgage rates has led to an increase in homeowners listing their properties for sale.
• Active listings in December rose 4.9% from a year earlier, the largest annual increase since June.
• Despite the increase, the housing market remains constrained with for-sale inventory still well below pre-pandemic levels.
• Active listings were down 30.9% in December compared to the same month in 2019, while new listings were down nearly 12%.
• The average rate on a 30-year mortgage has declined in recent weeks, but this may not be enough to motivate many homeowners to sell, as some two-thirds of U.S. homes have a mortgage with a rate under 4% and more than 90% have a rate below 6%.

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