Average Home Buyer’s Monthly Payment Shot Up 39%—The Biggest Annual Gain On Record
The typical home buyer’s monthly mortgage payment rose 39%, the largest year-over-year gain on record as the average 30-year-fixed rate hovered at a 12-year high of 5.1%. That’s according to a new report from Redfin, a technology-powered real estate brokerage. Redfin’s data on home buyer mortgage payments are based on asking-price data going back to 2015.
“Rising mortgage rates are taking a bite out of pending sales as both buyers and sellers take a step back from the turbulent market,” said Daryl Fairweather, Redfin’s chief economist. “It seems as though the ratio of buyers to sellers remains mostly the same, which is why we have yet to see a substantial drop in bidding wars or the share of homes selling quickly. It's still early days though when it comes to 5% mortgage rates. The number of buyers willing to pay such high mortgage payments could evaporate by late summer.”
Pending home sales posted their largest year-over-year decrease since mid-February and mortgage purchase applications fell 17%. On the supply side, new listings fell 4%, and the share of listings with price drops rose to its highest level since November. Read More...