Typical US Homebuyer’s Monthly Payment Drops $166 to Lowest Level in Four Months

During the four-week period ending on July 21st, the typical US homebuyer’s monthly housing payment was $2,671, Redfin reported (7-25-24). That is the lowest level in four months and down $166 from the record high set at the end of April.

Redfin notes that housing payments are falling because mortgage rates are falling: The weekly average mortgage rate has declined to 6.77%, its lowest level since March, as inflation cools.

Redfin also points out that buyers also have more homes to choose from: New listings are up 6.1% year-over-year and more listings are growing stale, giving house hunters the opportunity to negotiate. But even though housing payments are declining and inventory is improving, homebuyers remain hesitant. Pending home sales are down 5.7% year-over year—the biggest decline in nearly nine months—and mortgage-purchase applications are down 15% (and down 4% weekly).

Many would-be buyers are still waiting on the sidelines largely because even though mortgage rates are coming down a bit, home-sale prices are just shy of their record all-time high. Additionally, Redfin agents say some house hunters are waiting until after the upcoming presidential election to buy because they don’t want to make a large purchase in the midst of political and economic uncertainty.