Redfin Report: Monthly Housing Costs Hit All-Time High, Deterring Would-Be Buyers

7%-plus mortgage rates and increasing home prices have pushed the typical U.S. monthly mortgage payment to a record high, and sent pending home sales down 12% year over year

SEATTLE–(BUSINESS WIRE)–#housingmarket–(NASDAQ: RDFN) —The median U.S. monthly mortgage payment hit an all-time high of $2,632 during the four weeks ending September 10. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

What homebuyers need to know: It’s more expensive than ever to buy a home, with monthly payments at a record high due to stubbornly high rates and home prices. Although the weekly average mortgage rate has declined slightly from August’s two-decade high, it’s still sitting above 7%. Prices are up, too, increasing 4% year over year.

What home sellers need to know: Prices continue to rise because inventory is so low, posting one of its biggest declines in 19 months this week. In much of the country, you’re likely to get a fair price for your home—it’ll help if it’s move-in ready and in a desirable neighborhood. But keep in mind that high prices, elevated rates and the lack of inventory is sending some buyers to the sidelines; mortgage-purchase applications are hovering near a three-decade low and pending home sales are down 12% year over year.

Looking forward: This week’s CPI report shows that inflation came in a touch higher than anticipated. That doesn’t change the expectation that the Fed is highly unlikely to hike interest rates next week, but it does make a rate hike in November or December appear more likely. That could mean mortgage rates stay high through the end of the year—or rates could come down if economic data looks promising over the next few months.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-monthly-mortgage-payments-record-high

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country’s #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we’ve saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.

Contacts

Contact Redfin

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

press@redfin.com