Falling Home Prices Drive Mortgage Payments Down By Nearly $300!
Mortgage payments have decreased, driving many homebuyers to dip their toes into the market again!
According to a newly released report from Redfin, the typical U.S. home sold for about $40,000 less in the weeks leading up to Dec. 18 than it did during the peak in June, where the average was $391,000.
It's also worth noting that average mortgage rates also dropped during that time, reducing the typical homebuyer's monthly housing payment by $300. Also influencing this decrease are homes sitting on the market for about 39 days before going under contract --the most prolonged period since August 2020.
However, mortgage purchase applications increased substantially month over month, up 4.6 percent by the most recent Redfin numbers. Even their own Homebuyer Demand Index, which follows requests for Redfin's home tours and other homebuying services, shows an increase of 6.5 percent.
The Bottom Line
While the current market isn't nearly as hot as it was when the year started, it's showing signs of getting warmer. Those who were outbid during the buying boom will want to seize the moment and take advantage of sellers who are more willing to negotiate.
It's good to note that, so far, the slight increase in demand hasn't contributed to more pending home sales or new listings, according to Redfin's report. Any noticeable changes will likely appear in mid-January, after the holiday slowdown. New listings will likely need until spring to recover.