The median monthly U.S. housing payment hit an all-time high of $2,747 during the four weeks ending April 7, marking an 11% increase from a year earlier. That's according to a recent release from Redfin.
Persistently rising home prices and upward-trending mortgage rates are putting pressure on payments. The median home-sale price is $378,250, up 4.5% year over year and just about $5,000 shy of the record high hit in June 2022.
The average 30-year fixed mortgage rate per Freddie Mac's latest data is 6.88%, below the near-8% rates hit last October but still more than double pandemic-era lows.
Daily average mortgage rates jumped to their highest level since last November this week. After all, the March inflation report was hotter than expected, after rising 0.4% last week because the latest jobs report showed a stronger-than-expected economy. The main driver of both core and headline inflation last month was shelter costs.
“For homebuyers, the latest CPI report means mortgage rates will stay higher for longer because it makes the Fed unlikely to cut interest rates in the next few months,” said Redfin Economic Research Lead Chen Zhao. “Housing costs are likely to continue going up for the near future, but persistently high mortgage rates and rising supply could cool home-price growth by the end of the year, taking some pressure off costs.”
Homebuyer demand is continuing to keep home prices on their high horses. Redfin’s Homebuyer Demand Index is at its highest level since last July. And even though supply is picking up—new listings rose 14% year over year—inventory is still low compared to typical spring levels and promulgating high competition.
Metros with the biggest year-over-year increases in terms of median sale price were Anaheim, Calif. (up 22.2%), West Palm Beach, Fla. (up 17.4%), and Pittsburgh, Pa. (15.2%). Median sales prices declined in only one metro, San Antonio, TX (-1.7%).
