Seattle-based Redfin reports the average monthly mortgage payment nationwide rose $50 in the six-week period ending October 3. Meanwhile seller asking prices are at record highs.
Monthly mortgage payments are going up for American homeowners, according to a new report from Redfin. The Seattle-based national real estate brokerage said payments over a recent six-week period rose an average $50 per month.
The mortgage payment increases come as home sellers' median asking prices increased 12 percent over the same period a year ago. Affordability of homes is declining, Redfin says, but almost half of all homes still are snapped up from the market within two weeks.
"Mortgage rates and asking prices are both on the rise, which translates to higher housing costs," said Redfin Chief Economist Daryl Fairweather, in a press release on the new analysis. "For now, mortgage rates are still hovering near 3 percent and demand remains strong. However, we are likely to see rates tick up into the winter months, and that could slow demand just like it did in late 2018. As that happens, sellers will have a harder time getting buyers to bite on their sky-high asking prices."
Some key findings from the full Redfin report - covering four weeks through October 3:
- Asking prices of newly listed homes were up 12 percent from the same time a year ago to a median of $365,073, an all-time high.
- Pending home sales were up 3 percent year over year. That's the smallest year-over-year increase since June of 2020.
- New listings of homes for sale were down 8 percent from a year earlier. New listings have been below 2020 levels since the four-week period ending August 22.
- Active listings fell 23 percent from 2020.
- Of all homes that went under contract, 46 percent had an accepted offer within the first two weeks on the market. Of those same homes, 33 percent had an accepted offer within one week of going on the market.