Daily average mortgage rates reached their
highest level in nearly five months following Wednesday’s
hotter-than-expected inflation report, which will likely keep
mortgage rates elevated for the foreseeable future
(NASDAQ: RDFN) —The median monthly U.S. housing payment hit an
all-time high of $2,747 during the four weeks ending April 7, up
11% from a year earlier. That’s according to a new report from
Redfin (redfin.com), the technology-powered real estate
brokerage.
Housing payments are soaring because home prices and mortgage
rates are high. 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 is 6.82%, below
the near-8% rates hit last October but still more than double
pandemic-era lows.
Prices are staying stubbornly high because there’s enough
homebuying demand to prop them up. Redfin’s Homebuyer Demand
Index—a measure of requests for tours and other buying services
from Redfin agents—is at its highest level since last July. A
separate measure of tours shows they’ve increased 33% since the
start of 2024, much bigger than last year’s increase over the same
period (that’s partly because Easter fell during this week last
year). And even though supply is picking up—new listings rose 14%
year over year—inventory is still low compared to typical spring
levels, meaning there’s competition for many of the homes that are
on the market.
Mortgage rates, the other factor driving up monthly housing
payments, remain elevated because the Fed has kept interest rates
high so far this year. Daily average mortgage rates jumped to their
highest level since last November this week because the March
inflation report was hotter than expected, after rising last week
because the latest jobs report showed a stronger-than-expected
economy.
“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.”
For more of Redfin economists’ takes on the housing market,
including how current financial events are impacting mortgage
rates, please visit Redfin’s “From Our Economists” page.
Leading indicators
Indicators of homebuying demand and
activity
Value (if applicable)
Recent change
Year-over-year change
Source
Daily average 30-year fixed mortgage
rate
7.34% (April 10)
Up from 6.91% two weeks earlier; highest
level since November 2023
Up from 6.52%
Mortgage News Daily
Weekly average 30-year fixed mortgage
rate
6.82% (week ending April 4)
Up just slightly from 6.79% a week
earlier
Up from 6.28%
Freddie Mac
Mortgage-purchase applications
(seasonally adjusted)
Declined 5% from a week earlier (as of
week ending April 5)
Down 23%
Mortgage Bankers Association
Redfin Homebuyer Demand Index
(seasonally adjusted)
Up 7% from a month earlier to highest
level since July 2023 (as of week ending April 7)
Down 6%
Redfin Homebuyer Demand Index, a measure
of requests for tours and other homebuying services from Redfin
agents
Touring activity
Up 33% from the start of the year (as of
April 9)
At this time last year, it was up 9% from
the start of 2023 (last year’s increase was much smaller partly
because this was Easter week in 2023)
ShowingTime, a home touring technology
company
Google searches for “home for
sale”
Up 4% from a month earlier (as of April
6)
Down 9%
Google Trends
Key housing-market data
U.S. highlights: Four weeks ending
April 7, 2024
Redfin’s national metrics include data
from 400+ U.S. metro areas, and is based on homes listed and/or
sold during the period. Weekly housing-market data goes back
through 2015. Subject to revision.
Four weeks ending April 7, 2024
Year-over-year change
Notes
Median sale price
$378,250
4.5%
Median asking price
$410,950
6.5%
Biggest increase since Oct. 2022
Median monthly mortgage payment
$2,747 at a 6.82% mortgage
rate
11.3%
All-time high
Pending sales
84,323
-4%
New listings
91,452
14.1%
Biggest increase since June 2021
(year-over-year increase was large partly because Easter fell
during this time period in 2023)
Active listings
819,031
8.2%
Months of supply
3.2 months
+0.4 pts.
4 to 5 months of supply is considered
balanced, with a lower number indicating seller’s market
conditions.
Share of homes off market in two
weeks
42.5%
Down from 44%
Median days on market
37
-1 day
Share of homes sold above list
price
28.4%
Essentially unchanged
Share of homes with a price
drop
5.8%
+1.5 pts.
Average sale-to-list price
ratio
99.1%
+0.3 pts.
Metro-level highlights: Four weeks
ending April 7, 2024
Redfin’s metro-level data includes the 50
most populous U.S. metros. Select metros may be excluded from time
to time to ensure data accuracy.
Metros with biggest year-over-year
increases
Metros with biggest year-over-year
decreases
Notes
Median sale price
Anaheim, CA (22.2%)
West Palm Beach, FL (17.4%)
Pittsburgh (15.2%)
San Jose, CA (13.9%)
New Brunswick, NJ (13.9%)
San Antonio, TX (-1.7%)
Declined in just 1 metro
Pending sales
San Jose, CA (22.6%)
San Francisco (15.8%)
Cincinnati (5.7%)
Milwaukee (5.5%)
Seattle (5.4%)
Atlanta (-15.3%)
Houston (-13.5%)
Nassau County, NY (-12.1%)
Fort Lauderdale, FL (-11.2%)
West Palm Beach, FL (-10.9%)
Increased in 11 metros
New listings
San Jose, CA (56.8%)
Sacramento, CA (39.2%)
Austin, TX (30.7%)
Jacksonville, FL (30.5%)
Oakland, CA (30.4%)
Newark, NJ (-3.1%)
Milwaukee (-3%)
Chicago (-2.9%)
Providence, RI (-2.2%)
Atlanta (-2%)
Cleveland (-0.1%)
Declined in 6 metros
To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-mortgage-payments-record-high-inflation-report
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
rentals, lending, title insurance, and renovations services. We run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. Our home-buying
customers see homes first with on-demand tours, and our lending and
title services help them close quickly. Customers selling a home
can have our renovations crew fix it up to sell for top dollar. Our
rentals business empowers millions nationwide to find apartments
and houses for rent. Since launching in 2006, we've saved customers
more than $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240411302713/en/
Redfin Journalist Services: Kenneth Applewhaite, 206-414-8880
press@redfin.com
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