Typical Monthly Payments Ease As Rates Slide Downward

As mortgage rates start to dip, housing payments are following suit.

A new report from Redfin says the typical U.S. homebuyer’s monthly housing payment was $2,671 during the four weeks ending July 21, marking the lowest level in four months and down $166 from the record high set at the end of April.

Redfin's report included the weekly average mortgage rate has declined to 6.77%, its lowest level since March, as inflation begins to settle.

Buyers also have the luxury of more listings to choose from, with new listings up 6.1% year over year. But even though housing payments have eased and inventory is improving, homebuyers remain hesitant.

Pending home sales are down 5.7% year over year, the biggest decline in nearly nine months, and mortgage-purchase applications are down 15%. Existing-home sales continued to fall in June, and the pace of new home sales has also appeared to stall.

Redfin's data show the market still favors sellers, with inventory being at 3.6 months supply, a +0.7 point increase from the same time last year. Redfin shared that four to five months of supply is considered balanced, with a lower number indicating seller’s market conditions.