Current:Home > InvestMonthly mortgage payment up nearly 20% from last year. Why are prices rising?-DB Wealth Institute B2 Expert Reviews
Monthly mortgage payment up nearly 20% from last year. Why are prices rising?
View Date:2024-12-23 23:53:37
Elevated mortgage rates and sales prices mean owning a home is about 20% more expensive than it was last year.
The typical U.S. homebuyer’s monthly mortgage payment was $2,605 during the four weeks ending July 30, down $32 from July’s record high but up 19% from a year prior, according to a Friday report from real estate listing company Redfin.
The median home sale price was $380,250 – up 3.2% from a year ago and the biggest increase since November, according to Redfin. The company's report noted that home prices are increasing because of the mismatch between supply and demand, with the total number of homes for sale down 19% as homeowners hang onto their lower mortgage rates.
“High rates are also sidelining prospective buyers, but not as much as they’re deterring would-be sellers,” the report reads. Redfin’s Homebuyer Demand Index found early-stage demand is down just 4% from a year ago.
What are mortgage rates right now?
The average rate for a 30-year fixed-rate mortgage was 6.9% last week, up from 6.8% the week prior, according to Freddie Mac.
Learn more: Best personal loans
“The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week,” Freddie Mac Chief Economist Sam Khater said in a news release. “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”
Total housing inventory was 1.08 million units at the end of June, down 13.6% from one year prior, according to the National Association of Realtors.
Housing market recession?Not likely. Prepare for hot post-pandemic prices
Who can afford a home?
Amid rising housing prices, Redfin found that first-time homebuyers would need to earn close to $64,500 to afford a starter home, with the typical starter home in June selling at a record $243,000 – up more than 45% from before the pandemic.
veryGood! (3974)
Related
- Philadelphia mass transit users face fare hikes of more than 20% and possible service cuts
- Tampa Bay Rays put top hitter Yandy Diaz on restricted list
- Beltré, Helton, Mauer and Leyland inducted into the Baseball Hall of Fame
- ‘We were not prepared’: Canada fought nightmarish wildfires as smoke became US problem
- Horoscopes Today, November 10, 2024
- Gwyneth Paltrow Shares What Worries Her Most About Her Kids Apple and Moses
- Is there a way to flush nicotine out of your system faster? Here's what experts say.
- How Much Money Do Influencers Get Paid? Social Media Stars Share Their Eye-Popping Paychecks
- Fantasy football Week 11: Trade value chart and rest of season rankings
- Why Gymnast Dominique Dawes Wishes She Had a Better Support System at the Olympics
Ranking
- Pedro Pascal's Sister Lux Pascal Debuts Daring Slit on Red Carpet at Gladiator II Premiere
- Starbucks will be using new cold cups at 24 stores amid local mandates
- As 'Twisters' hits theaters, experts warn of increasing tornado danger
- Horoscopes Today, July 20, 2024
- Kim Kardashian and Kourtney Kardashian Team Up for SKIMS Collab With Dolce & Gabbana After Feud
- Tech outage latest | Airlines rush to get back on track after global tech disruption
- 8.5 million computers running Windows affected by faulty update from CrowdStrike
- Revisiting Josh Hartnett’s Life in Hollywood Amid Return to Spotlight
Recommendation
-
Jennifer Garner and Boyfriend John Miller Are All Smiles In Rare Public Outing
-
The Barely Recognizable J.D. Vance as Trump’s Vice Presidential Running Mate
-
Endangered tiger cubs make their public debut at zoo in Germany
-
Christina Hall Enjoys Girls' Night out Amid Josh Hall Divorce
-
Gisele Bündchen Makes First Major Appearance Since Pregnancy
-
Utah State football player Andre Seldon Jr. dies in apparent cliff-diving accident
-
Olympics 2024: Meet the U.S. Women’s Gymnastics Team Competing in Paris
-
Why Gymnast Dominique Dawes Wishes She Had a Better Support System at the Olympics