A new report from Redfin shows the median monthly housing payment climbing 11% year over year to an all-time high of $2,747.
The report highlights housing market data for the four weeks ending April 7, 2024. Housing payments are rising because home prices and mortgage rates are both high. And Wednesday’s (April 10) hotter-than-expected inflation report hasn’t helped.
Wednesday’s report shows a 0.4% month-over-month increase in core inflation (and a 3.8% increase year over year), which is the same as the previous month but higher than the expected 0.3% (3.7% year over year).
Given those numbers—along with the latest jobs report showing a stronger-than-expected economy—the Fed is unlikely to initiate cuts to the federal funds rate at the next FOMC meeting (April 30). More than likely, they’ll hold off until July or even September.
Anticipating the Fed’s caution, the 10-year treasury yield shot up to around 4.5%, and daily average mortgage rates soared to their highest level in nearly five months, gaining more than a quarter percentage point in one day.
Buyers should expect those rates to remain high for the foreseeable future. And for new homebuyers, that means a heftier monthly mortgage payment.
MEDIAN HOME PRICES CONTINUE TO RISE
Mortgage rates aren’t the only factor in this month’s record-high monthly payments.
The median home sale price rose 4.5% year over year to $378,250—just about $5,000 under the record-high reached in June 2022.
Home prices are remaining stubbornly high because buyer demand is still high enough to keep them from falling. And while housing supply is picking up (with a 14% annual increase in new listings), inventory remains lower than typical spring levels, meaning buyers can count on competition for available homes.
HIGHLIGHTS FROM REDFIN’S KEY HOUSING MARKET DATA
Redfin’s report includes housing market data at the national and metro level for the four weeks ending April 7, 2024.
Here are the national highlights:
METRO-LEVEL HIGHLIGHTS FOR THE FOUR WEEKS ENDING APRIL 7
Metros with the biggest annual increases in median home sale price:
San Antonio, TX, was the only metro reporting an annual decline in the median home sale price (-1.7%).
Metros with the biggest annual increases in new listings:
Metros where new listings declined year over year:
Pending sales increased year over year in 11 metros, with the biggest annual increases in:
Metros with the biggest annual declines in pending sales:
By: Sarah Lentz
| BAM I April 15, 2024