A new report from Redfin shows the typical U.S. homebuyer’s monthly mortgage payment was $2,605 during the four weeks ending July 30, up 19% from a year earlier and down just $32 from early July’s all-time high.
Housing payments remain historically high because mortgage rates remain elevated, with weekly average rates clocking in at 6.9%, and home prices are on the rise. The median home-sale price is up 3.2% year over year, the biggest increase since November.
Home prices are increasing because of the mismatch between supply and demand. High mortgage rates have pushed many would-be sellers out of the market, with homeowners hanging onto their relatively low rates. The total number of homes for sale is down 19%, the biggest drop in a year and a half, and new listings are down 21%.
High rates are also sidelining prospective buyers, but not as much as they’re deterring would-be sellers. Redfin’s Homebuyer Demand Index is down just 4% from a year ago.
Mortgage-purchase applications during the week ending July 28 declined 3% from a week earlier, seasonally adjusted. Purchase applications were down 26% from a year earlier.
Sale prices increased most in Miami (12.7% YoY), Cincinnati (9%), Milwaukee (8.6%), Anaheim, Calif. (8.5%) and West Palm Beach, Fla. (8.4%).
Home-sale prices declined in 19 metros, with the biggest drops in Austin, Texas (-9.9% YoY), Phoenix (-4.2%), Detroit (-3.9%), Las Vegas (-3.5%) and Fort Worth, Texas (-3.2%).
Months of supply was 2.9 months, the highest level since April. Four to five months of supply is considered balanced, with a lower number indicating seller’s market conditions.
Of homes that went under contract, 43.7% had an accepted offer within the first two weeks on the market, up from 42% a year earlier.
Homes that sold were on the market for a median of 27 days, up from 23 days a year earlier.
Nearly 36% of homes sold above their final list price (35.9%), down from 43% a year earlier.
The average sale-to-list price ratio, which measures how close homes are selling to their final asking prices, was 100%. That’s down from 100.7% a year earlier.
Image by Nattanan Kanchanaprat from Pixabay.