In 2023, existing home sales fell to their lowest level in nearly 30 years, but now there are some early signals that the market is picking back up.

Why it matters: If the trends hold — and that is a big “if” — housing market activity hit bottom in 2023, and more homes will be bought and sold in the coming months.

The big picture: This is all about mortgage rates, which nearly touched 8% last year, putting the housing market into a deep freeze.

  • But now they’re heading back down — hitting 6.6% last week — and that spurred market activity.
  • The market looks better than it did in the fall when rates closed in on 8%, said Chen Zhao, Redfin’s economic research lead. That may have been a bottom for home sales.