US Median Home Sales Price Increases 5% Year-Over-Year—Just Shy of All-Time High

On Thursday, Redfin reported that in the four-week period ending April 14th, the median US home sales price increased 5% year-over-year to $380,250, just $3,095 shy of the all-time high in June 2022.

The increase comes as the average daily mortgage rate surpassed 7.4%, the highest level since last November. This is the result of a hotter-than-expected inflation report and the Fed’s confirmation that interest-rate cuts will be delayed, Redfin says. The combination of higher interest rates and home prices have brought homebuyers’ median monthly housing payment to a record $2,775, which is up 11% year-over-year.

Redfin is reporting that there are signals that buyers are out there touring homes despite rising rates. Mortgage-purchase applications are up 5% week-over-week, and Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is near its highest level in seven months.

Some house hunters are hoping to buy now because they’re concerned rates could rise more, and others have grown accustomed to elevated rates and pushed down their home-price budget accordingly, Redfin’s Economic Research Lead Chen Zhao said.