Fueled by record-low mortgage rates, home sales have surged beyond January and February, according to Redfin’s latest monthly market survey.

Record low mortgage rates have fueled home sales to pass pre-pandemic levels during the first week of July, according to a market survey released Wednesday by Redfin. It’s the first time since the country went into regional lockdowns in March that sales have topped January and February levels.

The spike in sales comes as the fixed-rate for a 30-year mortgage averaged 3.03 percent for the week ending July 9.

“The industry is responding to an avalanche of applications for refinances and purchases,” Rob Foos, a mortgage advisor with Redfin Mortgage in Boston, said in a statement. “A combination of rock-bottom rates plus pent-up purchase demand has resulted in the highest levels of purchase applications in about a decade.”

A number of indicators signal that home sales are going to continue their rise in coming weeks, according to the report. Mortgage purchase applications were 15 percent above pre-pandemic levels and the Redfin home-buying demand index is roughly 20 percent above pre-pandemic levels.

New listings were roughly at their pre-pandemic level for the third straight week, according to the report, but could still not satisfy the hearty homebuying demand. The total number of new homes for sale ended the week down 29 percent year over year.

“Some of my clients are considering selling, but it’s a matter of finding a home they can buy,” Thomas Wiederstein, a Redfin agent in Phoenix, said in a statement.

“Even if they do find a home that checks all the boxes, many move-up buyers can’t buy a new home before they sell their current one,” Wiederstein added. “With bidding wars so common, it’s very hard to get an offer accepted that’s contingent on the sale of the buyer’s current home.”

The lack of inventory, coupled with low mortgage rates, is leading to more competition for homes and in turn, rising home prices. The average sales price for the week ending July 5 was $310,000  — an increase of 7 percent year-over-year.

The share of homes that went off the market within two weeks was 45 percent for the week, leading to more bidding wars and buyers waiving contingencies to make offers more attractive.

“We’re back to buyers waiving their rights to cancel the contract if something pops up during the inspection or they can’t get their loan approved,” Shoshana Godwin, a Redfin agent in Seattle said in a statement. “Buyers used to try to inspect the home before writing an offer, but now sellers are providing an inspection report upfront. That brings in even more bidders because they don’t need to spend $500 on an inspection just to make an offer.”

Email Patrick Kearns

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription