Redfin: Cost of Buying A Home Hits New Record

The median U.S. home sale price increased 5% compared to last year's numbers during the four weeks ending April 14, rounding out at $380,250—just $3,095 shy of June 2022’s all-time high. That’s according to a new report from Redfin. 

The average daily mortgage rate this week surpassed 7.4%, the highest level since last November, after a hotter-than-expected inflation report and the Fed’s confirmation that interest-rate cuts will be delayed. The combination of high mortgage rates and prices has brought homebuyers’ median monthly housing payment to a record $2,775, up 11% year over year.

However, Redfin noted in its report signals that buyers are out there touring homes despite rising rates. Mortgage-purchase applications are up 5% week-over-week, and Redfin’s Homebuyer Demand Index — a measure of requests for tours and other buying services from Redfin agents — is near its highest level in seven months.

Chen Zhao, Redfin's economic research lead, said some house hunters are hoping to buy now because they're concerned rates could rise more, and others have grown accustomed to elevated rates and pushed down their home-price budget accordingly.

The median asking price for the same time period was $413,225, a 6.4% increase year-over-year. Per Redfin, that's the biggest increase since Oct. 2022. The monthly mortgage payment rose 10.6% year-over-year, with the average payment being $2,775 at a 6.88% mortgage rate. 

Metros with the biggest year-over-year increases in terms of asking price were Anaheim, Calif. with a 24.8% increase, Providence, R.I. (14.6%), Nassau County, N.Y. (14.3%), West Palm Beach, Fla. (13.5%), and New Brunswick, N.J. (13.1%)