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Redfin stock rises as home prices fell by over 3% in March

The Yahoo Finance Live team discusses the outlook for Redfin and the decline in home prices in March.

Video transcript

DAVE BRIGGS: My play is Redfin, the online real estate services company reporting the median US home price in March fell 3.3% from a year ago. That is the biggest decline in 11 years. Among the cities seeing the biggest drop Boise, Idaho down 15%, Austin, Texas more than 13%, Sacramento and San Jose, California both down more than 10%. And yes, those are all primarily out West.

Redfin said it also saw new listings fall 23% in March as higher mortgage rates forced both buyers and sellers to stay in their current homes. The Mortgage Bankers Association says the 30 year fixed now at 6.43%. That is well up. We will get the Freddie Mac number on Thursday. Redfin shares up a percent today and up 112% year to date as we get some interesting news in the industry. But the price drop was the real headline here.

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SEANA SMITH: Price drop was a real headline, but I still think it's very uncertain when we're going to regain significant momentum within the housing sector, especially given the fact that the 30 year mortgage rate ticking to the upside. We had applications dropping 10% last week from the prior week. That was the biggest drop that we have seen now in quite some time. So we talk about the fact that people are stuck in their homes with those lower mortgage rates. They're not eager to sell. People aren't buying because of the fact that mortgage rates are so much higher than they were a year ago. So it's a tough predicament right now and it's really tough to figure out where the housing industry is going to go, at least over the next couple of months.

- And on top of mortgage rates you had the SVB collapse that I think spooked a lot of potential buyers out there, slowed that momentum down. Redfin also noted that the dip in pending sales a major contributor to these dips in prices since if you have less buyers on the market the Sellers need to sell their homes for less. But a lot of uncertainty and a lot of unknowns as we move forward.

DAVE BRIGGS: Rates will continue to climb.