Average Monthly Mortgage Payment Just Shy of All-Time High

Redfin reported on Friday (8-4-23) that during the four-week period ending on July 30th, the typical US homebuyer’s monthly mortgage payment was $2,605 per month. That is up 19% year-over-year and down only $32 from the record set earlier in July.

Housing payments remain historically high because mortgage rates remain elevated; this week’s average 30-year fixed rate was 6.9%. The median home-sale price is also up 3.2% year-over-year, which is the largest increase since November 2022.

Redfin says home prices are increasing because of the mismatch between supply and demand: High mortgage rates have pushed many would-be sellers out of the market, with existing homeowners hanging onto their relatively low rates. The total number of homes for sale is down 19%—the largest decline in a year and half—and new listings are down 21%.

Finally, Redfins says high rates are also sidelining prospective buyers, but not as much as they’re deterring would-be-sellers. As an example, Redfin’s Homebuyer Demand Index, which measures early-stage demand through requests for tours and other buying services from a Redfin agent, is down just 4% from a year ago.