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A report from Redfin.com revealed that November was the most affordable month to purchase a home in 2020. Redfin reports that the median monthly mortgage payment nationwide reached a low of $1,094 in November, compared to a peak of $1,163 in February 2020.
"It's easy to forget that the price is just one part of the equation of how much house a buyer can afford," said Redfin chief economist Daryl Fairweather. "The relationship between historically low mortgage rates and surging home prices has been fascinating to watch this year. We've seen mortgage rates drive unforeseen levels of homebuyer demand, which has pushed prices up by upwards of 15% in recent weeks. The good news for those buyers who are persevering through a dearth of homes for sale and fierce bidding wars is that once you do land a home, today's sub-3% mortgage rates are largely canceling out the high prices."
The company notes that the numbers do not include statistics from December 2020. Additionally, the median list price nationwide was $336,000 in November, the highest median price on record. However, the increase in the median list price was countered by an average mortgage rate of 2.77%, according to the report. Redfin reported that April was the second-best month of the year for homebuyers as the median monthly mortgage payment hit $1,112.
"A lot of my buyers would be surprised to hear that November was considered a good month to buy," said Seattle Redfin agent Shoshana Godwin. "Although monthly mortgage payments are lower than they were at the beginning of the year, buyers are still facing five to 15 competing offers on desirable homes. People have to find a home and get their offer accepted before they can take advantage of low rates."
Click here to read more from the report.