Monthly Mortgage Payments Hit Record High

As rates rise along with home prices monthly mortgage payments have now hit a record high, according to Redfin’s latest data…(Redfin)

• The estimated monthly mortgage payment for a typical home for sale rose $388 (+25%) year over year to a record $1,931.

• This is based on the all-time high median asking price of $376,000 and an average 30-year mortgage rate of 3.69%.

Listings, unfortunately, continue to fall with new listings down 10% compared to the same time in 2021 and down 12% compared to the same time in 2021.

• Active listings fell 29% year over year, dropping to an all-time low of 440,000. Listings are now down a whopping 50% from the same period in 2020.

Not surprisingly, with the fear of even higher rates on the horizon and record low inventory, the time a home spends on the market fell to a median of 29 days which is down from 38 days a year earlier and 59 days in 2020.

Daryl Fairweather, Redfin Chief Economist, said non-homeowners are feeling the pinch right now, but it’s not too late to buy…

• “Movers are feeling a big pinch. There is nowhere for them to run from increasing housing costs now that mortgage rates are rising and inflation has spread to the rental market…My advice to buyers who are worried they will have to overbid in order to win a home is to make sure they can see themselves living in the home for at least five years. I expect home values to rise over that time horizon even if there are short-term fluctuations in the housing market…”