Monthly Mortgage Payments Fall While New Listings Increase

Redfin on Thursday (11-30-23) reported that according to its data, housing payments have declined for the fifth consecutive week. The typical US homebuyer’s monthly mortgage payment during the four-week period ending November 26th was $2,575, down from $2,739 last month but up 13% year-over-year.

Redfin says that monthly payments are falling from their peak because mortgage rates are falling from their peak. The weekly average 30-year mortgage rate is 7.29%, down from a high of 7.79% in October; and the daily average is 7.13% as of November 29th, its lowest level since the start of September.

Rates have declined enough to offset rising home prices; the median sale price is up 4%. Prices are up because inventory is low; the total number of homes for sale is down 7% year-over-year. But there is hope for buyers wanting more homes to choose from: New listings are up 6%, the biggest year-over-year uptick in over two years. Buyers are taking note of slightly improved conditions: Mortgage-purchase applications are up 5% weekly.

Adding additional background and her analysis, Redfin Economics Research Lead Chen Zhao said:

“Mortgage rates are dropping due to easing inflation and investors betting the Fed will cut interest rates sooner than expected. Declining rates, along with a sizable year-over-year increase in new listings, are leading to more favorable conditions for some buyers. My advice for serious homebuyers is to compare housing costs to recent highs instead of long-ago lows. Housing costs are at their lowest level in three months, and it’s unlikely they will drop significantly anytime soon. That makes it a relatively good time to lock in a rate.”