US pending home sales surged 2.5% in September, marking the largest monthly increase in over a year and a half, according to a Redfin report. Redfin (RDFN) CEO Glenn Kelman joins Wealth! to share his insights on the current housing market dynamics.

The 30-year fixed mortgage rate spiked to 6.44%, rising for the third consecutive week.

Kelman emphasizes homebuyers' resilience in today's market, particularly their responsiveness to rate fluctuations. "We see people trying to lock a rate on a Friday before it goes up on a Monday," he explains.

The Federal Reserve's September rate decision had a psychological impact, triggering what Kelman describes as a "change in the real estate industry."

While acknowledging the impact of interest rates on housing affordability, Kelman points to some positive developments. Despite elevated median mortgage rates, monthly payments have decreased by an average of $300 since April, which Kelman says is helping to keep potential buyers engaged: "so people are still staying in the game."

Looking ahead to the presidential election, Kelman doesn't anticipate immediate changes to the housing sector, whether under a Trump or Harris administration.

Instead, he draws a parallel to the Federal Reserve's influence: "I think many people are waiting the same way they were waiting on the Fed. When the Fed made its cut, it didn't actually affect mortgage rates, but it did affect consumer psychology, and I think when the election is over, it won't actually immediately affect inventory home prices or anything like that, but it might affect homebuyer and home seller psychology."

Kelman came on Yahoo Finance in September and commented on the US housing market and policy expectations from Vice President Kamala Harris and former President Donald Trump. Here's what he had to say:

One thing Redfin's CEO would like to hear Harris, Trump address

America has forgotten how to build homes: Redfin CEO

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This post was written by Angel Smith