Housing Market Update: Typical Monthly Payment Is Nearly $300 Less Than October Peak, Bringing Some Homebuyers Back
Some Agents say buyers are resuming their search as home prices and rates fall from their peak, but the uptick in house hunting hasn’t yet translated to sales.
The typical U.S. home sold for roughly $352,000 during the four weeks ending December 18, down 10% from a peak of $391,000 in June and up just 1% year over year. Average mortgage rates declined for the sixth straight week to 6.27%, cutting nearly $300 from the typical homebuyers’ monthly housing payment since it hit a peak in late October with 7% rates. The typical for-sale home was listed for 39 days before going under contract, the longest period since August 2020, contributing to the biggest supply increase on record.
The combination of slowing price growth, lower mortgage payments and homes sitting on sale for well over a month is making the market a bit more favorable for buyers than it was in the fall, and some are starting to return. Mortgage-purchase applications were up 4.6% from a month ago and Redfin’s Homebuyer Demand Index, which tracks requests for tours and other Redfin homebuying services, was up 6.5%.
