Housing market: Here's how high interest rates drive up payments

  • 📰 KSLcom
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 51%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

This time a year ago, the typical American homebuyer's monthly mortgage payment was roughly $2,100 — expensive, yes, but interest rates were between 5% and 6%.

are among the top states with local markets to see the nation's largest year-over-year home price declines.for those who bought in 2021. The total number of homes for sale is down 19%, the biggest drop in a year and a half, according to Redfin. As for new listings, they're down 21%.

Nationally, the median home for-sale price was up 3.2% year over year in July, the biggest increase since November, Redfin reported. "Home prices are increasing because of the mismatch between supply and demand. High mortgage rates have pushed many would-be sellers out of the market, with homeowners hanging onto their relatively low rates," Redfin analysts wrote.

Interestingly, even though high rates are deterring potential buyers, sellers have been chilled far more. Redfin's Homebuyer Demand Index — which measures early-stage demand through requests for tours and other services from Redfin real estate agents — is down only 4% year over year. Keep in mind, those are national figures. The U.S. housing market is continuing to undergo a divided real estate correction, with prices rising in the East, while prices are down in many areas in the West.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 549. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Mortgage rates forecast: How housing market will change in the near futureNewsweek asked two experts what's causing the rise in mortgage rates and what this means for the housing market in the coming future.
Source: Newsweek - 🏆 468. / 52 Read more »